Analysis of the market situation, developed in previous trading sessions, shows the intersection of the Tenkan and Kijun lines. Typically, this signal indicates an upcoming increase, but subsequently the price fell below the Tenkan line.
The second most important signal is a change in the direction of movement of the cloud Kumo. This signal is marked on the chart with a vertical purple line. The orange color of the cloud indicates a change in the priority direction of movement to upward.
The current situation
Let’s look at the main components of the indicator and their current values:
The Tenkan line remains above the Kijun line, but the price has fallen below these lines and is now holding below them.
The Kumo cloud is colored orange, indicating the market tendency to a continuing upward movement.
The price is below the Kumo cloud, which is now acting as a resistance area for the price.
Trading recommendations:
The dynamic support level is on the Kijun line, around the 6889.61 mark.
Dynamic resistance levels are on the Tenkan line, around the 6891.08, the SenkouA line, at the 6901.91, and the SenkouB line, near the 6882.87.
The indicator signals predominantly support the upward vector of movement, so the upward bounce from the defined support levels signals are prioritized intraday.
