Overview:
As it was expected, a sell signal targeted to 1,1716 had formed. For the moment the signal is confirmed and solid as the price has managed to fixate below the Ishimoku cloud and the Chinkou span is below the price curve. Thus in the near term the decline is sure to continue. The mid-target is the first support level of 1,2246, if the price fixates below the level the target will 1,1930. Now we are also observing an insignificant correction as the price is slightly distanced from the minimums. The only alerting fact is that the price is not able yet to re-test the prior minimum. The Chinkou span is positioned below the price curve signaling the falling tendency. The Bollinger bands show the decline as the lines are converging and directed to downwards, which indicates a possible completion of the descending movement. The MACD is increasing demonstrating the current correction.
Trading recommendations:
Now it is recommended to wait for a retest of the previous minimum dated May 19. if the price fixates then below 1,2246, you should trade short with a target of 1,1930.
The chart annotation:
Ishimoku indicator:
Tenkan-sen — red line
Kijun-Sen — blue line
Senkou Span A — light brown stipple line
Senkou Span B — light purple stipple line
Chinkou Span — green line
Bollinger Bands indicator:
3 yellow lines
MACD indicator:
The red line and the histogram with the white bars in the indicators window.
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