WEEKLY (W1)

Still in the weekly clouds roughly in the middle of it and still above the TENKAN-SEN (@ 39’400) which should be watch carefully on the next weekly closing level.

Indeed, a failure to close above it would put the focus again to the bottom of the clouds around 37’600 (former congestion support on daily chart )

DAILY (D1)

Daily clouds still in resistance and the 40’800 area should be seen as a KEY PIVOT LEVEL for further development !

Indeed, a successful and sustainable breakout of that level (top of the daily clouds) would open the door for higher levels towards the former high @ 41’694 reached two days ago ahead of the 42’500 area (1 month top of the clouds !) and then towards the ongoing downtrend line resistance, currently around 44’200.

A failure to do it, would directly put the focus to the CLUSTER SUPPORT ZONE 40’200-39’800 and a breakout of 39’800 on a daily closing basis would add further selling pressure calling for further downside towards the 37’600-37’000 former daily congestion support as already previously mentioned in W1.

RSI slightly above 50, @ 52.56

LAGGING LINE in the clouds, currently testing the TS and KS support.

4 HOURS (H4)

Above the clouds and currently traded around the Tenkan-Sen level (40’898)

RSI @ 59.29

LAGGING LINE still in the clouds and above the Kijun-Sen

In this 4 hours time frame, watch the clouds (39’880-39’232)on the downside as first significant support area and the former high @ 41’694 as the first resistance.

A failure, on a 4 hours closing basis, to recover and hold above 40’898 would add further selling pressure for the upcoming trading hour (s).

1 HOUR (H1)

Watch the clouds which worked perfectly well, so far as a good leading indicator in this short term time frame.

A failure to hold above 39’900 (1 hour closing basis), would be seen as the first warning signal calling for further downside as previously mentioned in longer time frames.

IRONMAN8848 & Jean-Pierre Burki