During previous trading sessions, the intersection of the Tenkan and Kijun lines, marked with a pink square, was observed on the Bit.Cash chart. This signal indicates a potential change in the downward trend.
The second important signal is a change in the direction of movement of the Kumo cloud. This change is marked with a vertical purple line on the chart. The appearance of orange color in the cloud indicates a change in the main direction of movement to upward.
The current situation
Let’s carefully look at the current values of the main components of the Ichimoku indicator to assess the current state of the market:
The Tenkan and the Kijun lines are positioned above the current price. It indicates a negative market sentiment in the moment.
The dynamics of price movement over a longer distance is determined by the Kumo cloud, which is now colored orange. Thus, this signal prioritizes the upward vector of price movement in the future.
Trading takes place inside the cloud, which is a sign of a market instability. Cloud boundaries act as support and resistance levels for price.
Used by investors to identify a change in trend, the green Chikou line is held below the price on the chart.
Trading recommendations:
The dynamic support level is on the SenkouA line, around the 478.90 mark.
Dynamic resistance levels are located on the Tenkan line, near the 482.92, the Kijun line, near the 485.27, and the SenkouB line, near 496.79.
