Monthly: Posted a bearish Outside Month in March. This pattern often highlights the top of a trend and the start of a new downward bias. Last months price action posted an indecisive Inside Month. Expect trading to remain mixed and volatile while price action stays within the Ichimoku Cloud. Cloud resistance is located at 132.55
Weekly: Hold within an Expanding Wedge formation. This pattern has an eventual bias to break to the downside. Trend line support is currently located at 123.55. the measured moved target is the start of the wedge at 109.20. To the upside, 132.00 to 134.00 is a previous congestion zone.
Daily: The move higher is mixed and volatile, common in corrective sequences. A full AB=CD formation would take the cross to 132.35. This is close to the 61.8% pullback level of 132.58 (from 137.50 – 124.62). Trend line resistance (at 129.79) has been broken.
Intraday (four-hours) – We are approaching previous resistance at 130.36 and the short-term 161.8% extension level at 130.20. For this reason, we look to buy into mild dips. It should be noted that the 261.8% extension level (from 126.64-128.84) is located at 132.39. Lining up with the daily 61.8% pullback level and making this a Fibonacci confluence area (prime target)
TRADE IDEA CANCELLED AND UPDATED
