TECHNICAL ANALYSIS
FX room for a possible correction.
The mentioned correction then happened at the end of 2017. After nearly reaching the 20000.00 level at the end of 2017 it turned its direction and even performed a bearish Kumo breakout in the middle of January.
Figure 10: BTCUSD
on the Monthly chart, it’s quite obvious on the Weekly timeframe. The new year started with a bullish picture, the price was above the Cloud and also above the Kijun-Sen, but this trend quickly broke in January when the price entered the Cloud, broke through the Kijun level end performed a bearish Kumo breakout that was even confirmed by the Chikou Span. After a little correction back to the Kijun resistance level the price continued its way down confidently during February and March.
On the Daily USDJPY chart all Ichimoku components lined up and supported the bearish trend that started when the price broke out from the Kumo on the downside on the 10th of January. After
breakout the bearish trend was uninterrupted during the first three months of the new year.
The major resistance levels are the Daily Kumo bottom at 108.00, the Weekly Kumo bottom at 110.00 which is the same as the Monthly Kijun level. The next support level is the Monthly Kumo bottom at 110.00.
BITCOIN
The Bitcoin also had a bearish start of the year. In my previous Fx Trader Magazine article I mentioned that while in the middle of December 2017 the Ichimoku components mainly supported the continuation of the previous bullish trend, it
is important to see that - the Kumo
as the price left the Monthly and Weekly KijunSen level far behind (the price was nearly at 20000.00 while the Kijun was at 10000.00 on the Weekly and Monthly timeframes) - there was a huge disequilibrium on the market and there was a big
On the Daily chart all Ichimoku components supported this move and the price marched down to 6000.00 until the first week of February when a little correction happened, and the price stuck between the Kumo and the Kijun-Sen level which is the sign of a minor trend change. It then entered the body of the Kumo and stayed inside for two weeks, when in the middle of March, it performed a bearish Kumo breakout again.
If the bearish trend continues, the closest support level will be the last low 6000.00, while the resistance levels are at 9477.00 (Kijun-Sen level) and at 10000.00 (the top of the thin Kumo).
Gabor Kovacs Technical Analyst
Author of “Te Ichimoku Beginner educational book”
Gaborkovacs.com
FX TRADER MAGAZINE April - June 2018 49
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56
