Correction/reversal coming soon. Bull trap breakout setting up from supply line a few years ago and cumulative volume has declined considerably.
Bull Trap for attempted breakout. Cumulative volume is lower on the weekly chart. Price is also at pivot level that projects way back in time - see the line?
They're both tracking each other pretty tightly. Large divergence on 3/10 Oscillator. Anyone who is long beware!
Top in place.. possibly. Volume divergence at 1.33
Huge sell off volume recently. Sellers could be done, and buyers will step in. Key reversal bar during last session. Formed strong support @ $127 over the previous week.
Key reversal candle occurred last session. Positive volume spike a few days ago. Large traders have possibly unloaded. There is also a divergence on the 3/10 oscillator. Also just reversed at key level going back to May 2015.
Is at R2 daily pivot and at 81. Downward probabilities strong from here especially with accompanying volume spike
Similar environment and underlying structure to bonds just recently posted. 1. Volume spike on recent high 2. Failed breakout above previous high - bull trap 3. Divergence on slow line of 3/10 oscillator Interesting to see how this plays out.
We've had an ABC correction to the downside. This pattern usually precedes large moves. In this case potentially to the upside. There is also convergence on the 3/10 oscillator and its slow line. First target would be just past the last swing high as shown.
Here's YEN spot on the daily chart - Bullish reversal in play
There is so much pressure built up in this weekly chart. It's the same when looking on the daily. There are divergences on the 3/10 oscillator and its slow line on the weekly and daily chart. The triangle pattern on the weekly is bullish. It just seems logical for USDJPY to bust out soon on a daily basis to the upside
The technical factors for a reversal at this point are: 1. Volume spike a few days ago. 2. The recent high is at R2 yearly pivot 3. There is a divergence on the 3/10 oscillator and its slow line So with this, all these timing factors are lining up... 1. Gold - reversal to short side 2. US Dollar Index - reversal to the upside 3. Yen futures - reversal to the...
We have the inverse situation to the JPYUSD future chart I recently posted which points to bullish conditions for the US Dollar Index 1. The current low of the daily bar took out the most recent low at this level back in May 2016 - a bull trap - false breakout 2. Volume spike 3. Divergences on the 3/10 oscillator and it's slow line. All pointing to a reversal....
Which means the opposite for those who trade the spot USDJPY We have bearish conditions for a trend reversal... 1. False breakout - bear trap at the high yesterday 2. Volume spike at that high 3. Divergences on both the 3/10 oscillator and the 16 period EMA slow line All very strong bearish signs. I will have a look at the USD futures on another chart.
There are a number of things in play which could point to a possible sell off. 1. Volume spike blow off at recent high 2. Ascending triangle - bearing pattern 3. Break out failure/bull trap at recent high 4. Divergence on 3/10 Oscillator It doesn't seem logical that bonds could sell off here, but on the basis of the above, there is only one thing to follow, and...