Consolidation - too many positive divergences
Weekly:
- Neutral Ichimoku
- Heikin-Ashi candles have been printing both upper and lower wicks for last two weeks, while haDelta and DMO ticked higher: This means sellers faced counter buying interest, volatile consolidation has been going on at key support of 100wma and Senkou B. Please also note that haDelta and DMO both developed some positive divergence.
- EWO is bearish, MACD shows consolidation - histogram ticks higher.
- As discussed earlier a possible long term H&S top will be something to monitor in coming months! Especially if this similarity develops together with Bund futures! At some point long end bonds may start moving together in one direction, and that would be a huge game changer in global Fixed Income markets!
Daily:
- Bearish Ichimoku, but market may get stuck in 129'05 - 130'25 range.
- Heikin-Ashi switches to bearish today, BUT watch out for those positive divergences in haDelta and DM_Oscillator!
- EWO is bearish, but also started to build some positive divergence.
I am very confident about building a startegic fixed income short position both in ZN and in Bund, but just in case of Bund, here we have to be very picky on entry points too.
- Neutral Ichimoku
- Heikin-Ashi candles have been printing both upper and lower wicks for last two weeks, while haDelta and DMO ticked higher: This means sellers faced counter buying interest, volatile consolidation has been going on at key support of 100wma and Senkou B. Please also note that haDelta and DMO both developed some positive divergence.
- EWO is bearish, MACD shows consolidation - histogram ticks higher.
- As discussed earlier a possible long term H&S top will be something to monitor in coming months! Especially if this similarity develops together with Bund futures! At some point long end bonds may start moving together in one direction, and that would be a huge game changer in global Fixed Income markets!
Daily:
- Bearish Ichimoku, but market may get stuck in 129'05 - 130'25 range.
- Heikin-Ashi switches to bearish today, BUT watch out for those positive divergences in haDelta and DM_Oscillator!
- EWO is bearish, but also started to build some positive divergence.
I am very confident about building a startegic fixed income short position both in ZN and in Bund, but just in case of Bund, here we have to be very picky on entry points too.
