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.
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.
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.
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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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.
A picture is worth a thousand words right :)
Interesting .... Thank you for your time.
You are welcome!