PSM.DE: 17.03.2017
Time Frame: D1
Probable end of the mid-term downtrend after breaking a major diagonal, two tests and rebound from the former resistance turned into ongoing support. Formed a new bullish channel and we have trend-confirming figure "reversed head and shoulders" (Reversed H & S).
Figure: Reversed H & S
Price Action: bull bar crossing the figure's neckline
Technical indicators:
SMA 50/200 - in a positive formation, SMA50 is above SMA200. Moreover, the price touched and bounced from SMA50, which is a signal for promotion.
CCI 50 - crosses 0 upwards - a positive signal.
RSI 14 - passed over 50 - a positive signal.
At the moment the price breaks the neckline. The aggressive traders could enter now. The conservative approach is to wait for the bar to close above neckline and enter on correction in the next bar around 39.39.
SL: 37.60
Alternative scenario: if price moves below the main uptrend diagonal and remains there then it will spoil the positive formation.
Jr_Trader_Ivan_Ivanov
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.