- setup is still , price action seems to be blocked by Kijun Sen again. Of course we still have 3 days to go this week, but if no higher high, that can be a problem for bulls.
- Watch Heikin Ashi candle close this week! If we do not see bnullish recovery from yesterday's selloff, then weekly haDelta may have some warning for momentum drop.
- Price was trying to break above Kumo, but yesterday's OPEC data stopped bulls' run. Price retreated to Kumo and 47 support. We have all important average values here: Tenkan, Kijun, future Senkou A100 , and also previous + horizontal supp/res. As a thumb rule, 47 should act as stronger support, so we still have to look for buy signals here.
- Heikin Ashi switches to pull back, with sharp drop in haDelta. This shows a very agressive turn in short term bias and momentum. Now we have to watch carefully the price action around support. We have to see if smoothed haDelta drops below zero or reverses back up. It will be important to avoid a substantial lower low, and to see a reversal Heikin Ashi signal.
You see how agressive can be! Please make sure you use and built into your position sizing when you plan to enter any trades (not just in oil , but in any other instruments)!
For now it may worth to try some bottom fishing in 0,5-1 risk unit size. I did it already yesterday. Then if we see a Heikin Ashi signal, maybe followed by Kumo breakout, we can leverage and size up long positions.
p.s.: from tomorrow I'll be off for rest of the week. I may use Twitter to post few charts and ideas, so you can follow me there if you'd like to.
If you follow me on Twitter, there you could see my comments. Technically it looks bearish biased now. But it can stay choppy and tricky. One thing is sure. it is not good for a long! So if someone is happy to short, short it, if someone doesn't like to short at these level, then just don't touch it.
I don't touch it now.