Hi Traders! Weekly summary and review January 21st, 2022 is here. It is now time to recap and summarize the trade setups that we had during this week. Below you will find the short explanation of all the trade setups we had this week and how it has currently developed now.
GBPCHF – My idea here was “Looking at the H4 chart we could see that the price has created a bullish hidden divergence between the first low that has formed at 1.21428 and the second low that has formed at 1.24712 based on the MACD indicator which we may consider as evidence of bullish pressure. So the bottom line here is that the H4 chart has evidence supporting the bulls. Also, we have two key support zones that has formed, the first key support zone is formed by the 23.6%(1.24963) – 38.2%(1.24770) Fibonacci retracement levels of the big bullish move. The second key support zone is formed by the 50%(1.23710) – 61.8%(1.23150) Fibonacci retracement levels of the big bullish move. Until both these key support zones hold my short term view remains bullish here”.
Litecoin – My idea here was “On the H1 chart, the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently, it looks like a correction is happening. Also, the ADX indicator gave a bearish signal here as well at the cross of -DI (red line) versus +DI (green line), and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bearish pressure. Until the strong resistance zone (marked in red) shown in the image below holds my short term view remains bearish here and I expect the price to move lower further”.
NZDCHF – My idea here was “On the H4 chart, the price is moving inside a range which started on 6th December 2021. This range is formed by the highs and lows reaching parallel support and resistance zones. The price which is moving inside this range has currently reached the bottom of this range. While measuring the first wave inside this range using the Fibonacci expansion tool the 61.8%(0.61778) Fibonacci expansion level coincides with the bottom of the range which makes this area a key support zone for us. In addition to this, we have a bullish divergence that has formed between the first low that has formed at 0.61879 and the second low that has formed at 0.61857 based on the MACD indicator which we may consider as evidence of bullish pressure. Also, we have a bullish engulfing candle pattern that has formed which we may consider as yet another evidence of bullish pressure. In addition to this, based on the Stochastic Oscillator, we could see that the price has reached its extreme which we may consider as yet another evidence of bullish pressure. So based on all this, until the key support zone holds my short term view remains bullish here and I expect the price to move higher further”.
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To your success,
Vladimir Ribakov
Certified Financial Technician
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