Friday, April 6, 2012

The Dow 30 - Ichimoku Study - Week: 02 April to 06 April 2012 - Bears get a toehold..

Quick Reference : 
The Tenkan Sen - red line
The Kijun Sen - blue line
The Chikou Span - purple line
The Senkou Span A - black line
The Senkou Span B - grey line
The Kumo - grey shaded area.

Useful resources (free) from the Web:

DJI 30: Medium Term View (or) Week Chart (or) EOW with the Ichimoku Cloud:
DJI 30 - End of Week Chart - 06 April 2012  

Last 5 Signals seen on DJI 30 - Week Chart (EOW) in brief: For details see here and here :
1. Senkou Span Cross: Neutral Bullish Signal
2. Chikou Span Cross: Strong Bullish Signal
3. Tenkan Sen/Kijun Sen Cross: Neutral Bullish Signal
4. Kumo Breakout: Bullish Signal
5. The Flat Kumo: Bearish Signal
In our study, we consider as important, the signals of the previous posts, summarized above.

The inputs we get from the medium term view this week are..
A. Last week's candle took support on the Tenkan Sen (red line) - breaching this line would be the first indication of trend change from medium term view.
B. The Kijun Sen (Blue line) has started a sharp up move towards the price line.
C. The Chikou Span (Purple line) has started dipping towards the Kumo.

Bulls are still in dominance, from a medium term perspective.

DJI 30: Short Term View (or) Day Chart (or) EOD with the Ichimoku Cloud:
DJI 30 - End of  Day Chart - 06 April 2012  

Last 5 Signals seen on DJI 30 - Day Chart (EOD) in brief: 
1. Kumo Breakout: Strong Bullish Signal
2. Flat kumo: Bearish Signal
3. Tenkan Sen/Kijun Sen Cross: Strong Bullish Signal
4. Chikou Span Cross: Strong Bullish Signal
5. Kijun Sen Cross: Strong Bullish Signal
In our study we also consider as important, the previous signals, summarized above.

Do notice, that the 34 period Moving VWAP, is now in dotted Blue, and that the Price has dipped below it. This week's inputs...
D. The Chikou Span (purple line) is just about touching the price.
E. Price has crossed below the Tenkan Sen (red line) - indicating possible trend change to bearish in the short term.
F: Price has closed just above the Kijun Sen (blue).
G: Divergences on the Oscillator indicate weakness, however the oscillator hangs well above zero.

Bears have gained a toehold, in last week's action, in the short term view.