Today's White Candle creates a Bullish Engulfing Pattern on the heals of a Bullish Harami. That's pretty bullish. Technically long at 1071.31 when Price moved above the previous days close..
So it puts my analysis in an awkward position because the immediate market appears to be bearish according to the short term forks and the overhead resistance from the Kumos.
To satisfy the conflicting signals I'm thinking a pull back to somewhere between 1076 and 1080 in the morning before breaking out of the yellow fork, or maybe a peak at the Kumo.
Just as I predicted on 7/9/2010, the Squeeze indicator is building pressure, and just as I predicted we have arrived at the area sandwiched between the Daily Kumo, and the Weekly Kumo.
The trend appears to be up and if the yellow fork is violated there will be little doubt of higher prices // End of recap 2010.07-20 //
With two Kumos and a Fork at the 1089 level I don't expect the Bulls to be able to break this level, but it is the area where Price is expected to go.
Currently the handle of the yellow fork is being violated. The top tine of the yellow fork is the next target. The White fork may become wider but it shows the general path Price is expected to travel.
You may recall last Saturday I said 1057 was the level to break. Why? Because the red fork is there to offer support. Today will most likely bounce off the handle (dash line) of the red fork. I'm 99% certain of this because it is also the bottom of the Hourly Kumo. This hourly Kumo is flat and will offer a greater support than a changing Kumo.
Analysis presented on this Blog has only informational, and educational purpose, and does not represent a proposal for buying or selling contracts, equities or currency.