Technical Analysis

PUMA’s bullish cycle has more to go

I’m following PUMA’s bullish cycle on the weekly chart and technically we can see a further continuation up. This is why I will be looking to buy dips on the lower time frames as long as we get a good risk:reward for our entry. Now let’s have a look at the analysis.

PUMA W1 Chart

Price broke above the resistance zone around 215.50 and it is now aiming 245.00 or so. This is the zone which the price should reach according the the weekly bullish cycle.

PUMA D1 Chart

There is already bearish divergence forming. The shorter term daily cycle (red) creates magnetic levels slightly below the current market price and near the 245.00 zone as well. This is a perfect confirmation for us – daily and weekly cycles coinciding.

I have also plotted 2 up trend lines which we might use for the long entry as dynamic supportive zones.

PUMA H4 Chart

On the H4 chart we find another up trend line, the most recent one which i have also added. The idea is that we want to see a retrace, preferably in two waves down. Once that retrace finds a stop around the dynamic supportive zone and/or horizontal support levels we can go ahead and buy.

 

Here is an example of how the correction could look like. Of course wait for bullish divergence to appear between the two waves down (the 2 red arrows) which will give us a sign that the correction is over.

Ideally the price will re-test the 215.50 level and complete the divergence with a nice bullish candle pattern. We want to place the stop loss below it as this level seems to be very strong.

Final target should be 245.00 or so slightly below (watch out of bearish divergence). For initial target use 229.00.

 

Yours,

Vladimir

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Vladimir Ribakov

Following 11+ years of trading experience, trading my own accounts as well as for hedge funds and brokerages, I have decided to fulfill my destiny and to personally mentor Forex and Commodities traders. When I released the “Broker Nightmare” (software that hides trades from brokers) 8 years ago, I found an overwhelming number of frustrated people who genuinely wanted to learn how to trade the Forex market, but instead found themselves scammed and misled. Over the years I have also release other trading systems based on my trading strategies, and met a lot of people on my worldwide Forex seminars. We’ve formed a close Forex community and we meet once or twice a year in various locations in Europe.

View Comments

  • I used to trade only few major pairs and concentrate only on that, but with your assistance am getting to trade on various pairs and commodities ... and PUMA Bullish cycle is very interesting, thank you.

    • Cycles..divergences when you put it all together and mix it to the point where it gives you the same answer - this is where the real money is :)

  • You are making it very easy to follow using examples... I appreciate it Vlad... You are my all time mentor.

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