Price has bounced off the upper Kumo Cloud which was also
a previous congestion low, and is now closing in on lower
Kumo Cloud resistance. A break and close below the cloud
will be a trendshift but not a sell signal, as the lagging span
(green line) is above price and a bullish TK cross/Kumo twist
is in play. Considering this, chances are we will see a bounce
off the lower cloud if it is reached. Only a long red candle break
of the cloud will question this bias.
However, a break of the 1,5195 level (4 week low) will give a
trend following sell signal, which would place a stop 2ATR20
above that level (210 pips). The 4 week low is approximately
the same level as the current lower Kumo Cloud support.
The 210 pip stop will be just above the Kumo Cloud.
Thus, the picture is a bit mixed with overall bearish bias.
a previous congestion low, and is now closing in on lower
Kumo Cloud resistance. A break and close below the cloud
will be a trendshift but not a sell signal, as the lagging span
(green line) is above price and a bullish TK cross/Kumo twist
is in play. Considering this, chances are we will see a bounce
off the lower cloud if it is reached. Only a long red candle break
of the cloud will question this bias.
However, a break of the 1,5195 level (4 week low) will give a
trend following sell signal, which would place a stop 2ATR20
above that level (210 pips). The 4 week low is approximately
the same level as the current lower Kumo Cloud support.
The 210 pip stop will be just above the Kumo Cloud.
Thus, the picture is a bit mixed with overall bearish bias.