Let’s look at the four-hour chart. Tenkan-sen line is below Kijun-sen, the lines are horizontal . Confirmative line Chikou Span is above the price chart, current cloud is descending. The instrument has entered the cloud. The closest support level is the lower border of the cloud (7875.80). The closest resistance level is the upper border of the cloud (8267.00).
On the daily chart Tenkan-sen line is above Kijun-sen, the red line is directed downwards, while the blue one remains horizontal. Confirmative line Chikou Span is crossing the price chart from above, current cloud is ascending. The instrument has broken down Tenkan-sen and Kijun-sen lines. The closest support level is the upper border of the cloud (7113.80). The closest resistance level is Kijun-sen line (8032.54).
On the four-hour chart the instrument is trading within the cloud. On the daily chart we can see the beginning of the trend reversal. Short trades can be opened as soon as we get a confirmative signal from Chikou Span line (the line should cross the price chart). Presumable entry point is 7400.00, Take Profit – 7113.80, Stop Loss – 8267.00.
|Key Levels||7113.80, 7875.80, 8032.54, 8267.00|