The Chinese manufacturing PMI will influence the market direction. If the PMI will be lower then the last time then we will have a breakout above the upper side of the triangle. The volume should increase around 28.11.2016. If the breakout to the upper side of the triangle fail we will retest the 4600-5800 yuan support zone which is also at the 50% Fibonacci retracement. RSI perfomed a bullish bounce, which indicades a bullish breakout by time.
Comment:
5200 Yuan seems to be a resistance. If we break 5200 Yuan we will see a pump to the 5380-5300 area. We have a nice consolidation in this 5100-5200 range. BB also tighten. If we dont test the 5280-5300 Yuan level on the upper sight of the triangle before the 1.12.2016 then we will have a ongoing consolidation on this level until the Chinese manufacturing PMI will be released.
Comment:
Correction* "5280-5300 area"
Trade active:
I have opened a long trade at the last dip at 5118.3 yuan. The chart looks for me very bullish. The RSI is grinding straight down on his trendline and we recover all bigger dumps very fast. I expect the sideway go on until we have Chines manufacturing PMI datas. Actually the forecast for the Chinese manufacturing PMI is less 0.5 points, which should be enough to push the price of the upper side of the triangel and maybe through the triangle to 5400 Yuan or maybe 6000 Yuan. Soon we will have a decision of the market and we will see a breakout with high volume.
Trade active:
5400 Yuan seems to be the next major resistance. I will close my long trade at around 5400 Yuan and will start to build up a short position. The target zone for the short trade will be around 5000-5100 Yuan. Possible is also a slipage effect to 4800 Yuan with a strong bounce back to the 5000-5100 Yuan level. The support zone is marked green in the chart.
Trade closed manually:
Took profit! Time for bed : )
We are trading now in an ascending triangle. Here is the continue chart:
We are trading now in an ascending triangle. Here is the continue chart:
