Saturday, March 24, 2012

The Dow 30 - Ichimoku Study - Week: 19 March to 23 March 2012 - Flat lies the Kumo.

DJI 30 - End of Week Chart - 23 March 2012  

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.

Recent Signals : Last week (click here) and Previous Week (click here)

We concluded our study last week, with the note that the Flat Kumo (Senkou Span B), should start attracting the Price downwards, in the weeks to come. We used the the signals marked 'F' and 'G'. Incidentally last week's candle is red.

Another input is that the Kijun Sen (blue) has gone flat for the last two candles (see H above). As one would have studied in the reading material on Ichimoku, this flat nature implies lack of momentum, flat trend and state of equilibrium which also draws the price to itself (like the Flat Kumo).

Price breaching the Tenkan Sen (red) is the first indication, we would get of a correction. This does not look like happening, anytime too soon.