One thing is sure: short term and intraday volatility is likely to stay high. I see some possible signals for this correction to extend further, so if anybody is still short then be careful, also those who are long from the hammer candle can still hold their bottom fishers' long positions.
Daily: As expected, recovery started from the huge wick hammer candle. Slow Stoch is on the way up, MACD may follow with a bullish cross. DMI lines started to tighten a bit, very high ADX turning down, which means the selling pressure may ease further as probably we had enough selling climax for now.
Ichimoku is still bearish and we have a nice long term bearish channel too. But this channel is very wide, so anything is possible within that. If we see further pull back, the corrective tgts (upper support/resistance levels) are:
9000 / 9125 / 9460
4 Hrs: Ichimoku setup is bearish, but a lot less bearish as before: Chikou Span lost open space, almost hit price candles. Tenkan/Kijun weak bullish cross today. I expected the Price to retest Kijun, but it did not happen. So far it seems that 8700-8720 short term small support/resistance stopped the selling, and if recent candles hold above, that will strengthen this support and may form a small Inverse H&S pattern. The first wall ahead of more recovery is the downtrend line. If that breaks, then Chikou Span will cross above Price too and 9000 key level will be in focus.
1 Hr: This time frame has already turned into a bullish counter trend mode compared to the higher 4 Hrs. Price, Tenkan, and Kijun all above the Kumo, Tenkan is above Kijun and Price retested Kijun Sen. Slow Stoch is oversold, so with nextspike above 20 it may bring further buying, and then the third wave of this counter trend can shoot Price up above 8900. That would move Chikou Span as well above the Kumo, giving further strength for this bullish counter move.
Lower Support is 8600+, if bears manage to attack it, then the recovery will be over.
The key for further correction is to be able to stay above 8600, which is 4 Hrs Kijun Sen and 1 Hr Kumo bottom.
Daily: As expected, recovery started from the huge wick hammer candle. Slow Stoch is on the way up, MACD may follow with a bullish cross. DMI lines started to tighten a bit, very high ADX turning down, which means the selling pressure may ease further as probably we had enough selling climax for now.
Ichimoku is still bearish and we have a nice long term bearish channel too. But this channel is very wide, so anything is possible within that. If we see further pull back, the corrective tgts (upper support/resistance levels) are:
9000 / 9125 / 9460
4 Hrs: Ichimoku setup is bearish, but a lot less bearish as before: Chikou Span lost open space, almost hit price candles. Tenkan/Kijun weak bullish cross today. I expected the Price to retest Kijun, but it did not happen. So far it seems that 8700-8720 short term small support/resistance stopped the selling, and if recent candles hold above, that will strengthen this support and may form a small Inverse H&S pattern. The first wall ahead of more recovery is the downtrend line. If that breaks, then Chikou Span will cross above Price too and 9000 key level will be in focus.
1 Hr: This time frame has already turned into a bullish counter trend mode compared to the higher 4 Hrs. Price, Tenkan, and Kijun all above the Kumo, Tenkan is above Kijun and Price retested Kijun Sen. Slow Stoch is oversold, so with nextspike above 20 it may bring further buying, and then the third wave of this counter trend can shoot Price up above 8900. That would move Chikou Span as well above the Kumo, giving further strength for this bullish counter move.
Lower Support is 8600+, if bears manage to attack it, then the recovery will be over.
The key for further correction is to be able to stay above 8600, which is 4 Hrs Kijun Sen and 1 Hr Kumo bottom.
