No doubt, as Heikin-Ashi shows, it clearly has a bullish bias. But does it mean a bullish trend has started to take place? Not yet. Here are the technical factors to consider:
- Ichimoku setup is neutral: flat and thin Kumo, flat averages, Tenkan, Kijun and Senkou Lines more or less at same level between 1,23 - 1,2380. Price is at Kumo, and more importantly Chikou Span (lagging line) is also in the middle of the past Kumo.
- Price has been trading in a wider range of 1,20 - 1,2725. We can not really call it a trend until we see a sustained range break, which would also mean a textbook valid Kumo breakout (price above or below Kumo with relevant higher high or lower low)
- EWO ticked into green, but so it did in December. Not much to read from it now, especially that MACD is still below zero center line -> another indicator that shows lack of trend.
- Heikin-Ashi is bullish, no sign of any exhaustion yet. Range traders can hold their swing long positions with a trailing stop. They will have to take profit if they see Heikin-Ashi momentum loss in 1,26-1,27 resistance renage. Strategic trend traders will only buy either a breakout, or a new buy signal after some initial pull back to supports.
As haDelta+ indicator is at a relatively high value, it is not very good risk/reward to chase market and look for a new/additional long position at recent level. However as I said, those who are bullis, has nothing to worry about yet, just have to focus on price action at the resistance.
- Ichimoku setup is neutral: flat and thin Kumo, flat averages, Tenkan, Kijun and Senkou Lines more or less at same level between 1,23 - 1,2380. Price is at Kumo, and more importantly Chikou Span (lagging line) is also in the middle of the past Kumo.
- Price has been trading in a wider range of 1,20 - 1,2725. We can not really call it a trend until we see a sustained range break, which would also mean a textbook valid Kumo breakout (price above or below Kumo with relevant higher high or lower low)
- EWO ticked into green, but so it did in December. Not much to read from it now, especially that MACD is still below zero center line -> another indicator that shows lack of trend.
- Heikin-Ashi is bullish, no sign of any exhaustion yet. Range traders can hold their swing long positions with a trailing stop. They will have to take profit if they see Heikin-Ashi momentum loss in 1,26-1,27 resistance renage. Strategic trend traders will only buy either a breakout, or a new buy signal after some initial pull back to supports.
As haDelta+ indicator is at a relatively high value, it is not very good risk/reward to chase market and look for a new/additional long position at recent level. However as I said, those who are bullis, has nothing to worry about yet, just have to focus on price action at the resistance.
