Saturday, October 13, 2012

The Dow Jones - Ichimoku Study - Week: 08 October to 12 October, 2012 - Bears comeback

                               .....Regulars can skip below and go straight to the chart......

Introduction can be read at this link (click). 

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

Previous Signals seen on DJI 30 - Week Chart (EOW) as marked on chart below:

Kumo Breakout: Bullish Signal (B)
The Flat Kumo: Bearish Signal (Ko)
The Kijun sen cross:  Strong Bullish Signal (K)
Tenkan Sen Cross:  Strong Bullish Signal (Te)
The Tenkan Sen/Kijun Sen Cross:  Strong Bullish  Signal (T)

DJI 30: Medium Term View (or) Week Chart (or) EOW with the Ichimoku Cloud 
DJI 30 - End of Week Chart - 12 October, 2012

Learning from the Past Week: (click here for the post)
Chikou Span (pink line) - dives towards the price line.
The Oscillator ticks down, -ve divergence is persistent (b).
Support for index (a) was exactly on the Tenkan Sen (a) as studied last week.

Looking Forward into the next Week:
The Chikou Span heading for the Price line needs to be watched - bearish cross possible in a couple of weeks, if it falls at current rate.
After the consolidation of the last 4 candles Bulls hold the Index on the Tenkan Sen, for the week (a) - take off from here is critical, as cross of this line, is seen as an early indicator of trend change.