A comparison between IXIC and US10Y.
Hello traders and investors! Let’s do a quick study on the IXIC.
The index is having a hard time now that we hit our resistance and filled the gap at 14,387, and this is expected. This could trigger a pullback all the way down to the previous gap at 14,226, and the 21 ema area. Together, these supports form a dual-support level for the short-term.
If we lose this dual-support level, the index could drop more, but so far, we have no bearish sign confirming this. It is important to watch the 10-year yields, as this might be an important catalyst for the next movements:
To me, it seems it is doing a Double Bottom to fill the previous gap (yellow area), and this confirms the idea of a pullback in the short-term. However, when we look the daily/weekly charts, we see something interesting:
The 10-yr yield is doing a Hanging Man candlestick pattern in the daily chart, just after it hit the resistance at the black line, seen in the weekly chart as a major resistance in 2019. If the yield is about to correct for the next few days, now is the best time in many years.
This reading don’t affect the short-term reading, however, if the 10-yr yield triggers this Hanging Man, I’ll be convinced of a sharper pullback for the mid-term.
The IXIC still could fill the previous gap, and trigger the pivot point at 14,504 in sequence, reversing the trend in the mid-term, potentially filling the gap at 14,855. To sum up, even considering a possible pullback in the short-term, the bullish thesis in the mid-term is still valid – until proven otherwise.
Remember to follow me to keep in touch with my daily studies on stocks and indices!
Have a good day.
The index is having a hard time now that we hit our resistance and filled the gap at 14,387, and this is expected. This could trigger a pullback all the way down to the previous gap at 14,226, and the 21 ema area. Together, these supports form a dual-support level for the short-term.
If we lose this dual-support level, the index could drop more, but so far, we have no bearish sign confirming this. It is important to watch the 10-year yields, as this might be an important catalyst for the next movements:
To me, it seems it is doing a Double Bottom to fill the previous gap (yellow area), and this confirms the idea of a pullback in the short-term. However, when we look the daily/weekly charts, we see something interesting:
The 10-yr yield is doing a Hanging Man candlestick pattern in the daily chart, just after it hit the resistance at the black line, seen in the weekly chart as a major resistance in 2019. If the yield is about to correct for the next few days, now is the best time in many years.
This reading don’t affect the short-term reading, however, if the 10-yr yield triggers this Hanging Man, I’ll be convinced of a sharper pullback for the mid-term.
The IXIC still could fill the previous gap, and trigger the pivot point at 14,504 in sequence, reversing the trend in the mid-term, potentially filling the gap at 14,855. To sum up, even considering a possible pullback in the short-term, the bullish thesis in the mid-term is still valid – until proven otherwise.
Remember to follow me to keep in touch with my daily studies on stocks and indices!
Have a good day.
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