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 price is now positioned between the Tenkan and the Kijun lines, indicating a temporary consolidation before a potential resumption of the trend.
The Kumo cloud is colored orange, indicating the market tendency to a continuing upward movement.
The price is inside the Kumo cloud, which indicates a market uncertainty phase. The SenkouA and SenkouB lines act as support and resistance.
Trading recommendations:
Dynamic support levels are on the Kijun and SenkouB lines, around the 6889.61.
Dynamic resistance levels are on the Kijun and the SenkouB lines, around the 6889.61.
The indicator signals predominantly support the upward vector of movement, so the upward bounce from the defined support levels signals are prioritized intraday.
