NOT FINANCIAL ADVICE
Should we get bullish or do we stay bearish?
Let's take a dive on the Macro level for $ZIL using the Ichimoku Cloud indicator.
For the uninitiated on Ichimoku Clouds, Investopedia has a good introduction here.
With that out of the way, based on $ZIL's macro Weekly chart, here we consider the bearish and bullish signals from this indicator.
1. Price Action VS the Kumo Cloud.
Bearish: This week's candle is threatening to break into the Kump cloud and is within touching distance.
Bullish: It hasn't broken and trade inside the cloud! The near horizontal Kumo cloud means that $ZIL may have a few more weeks to stabilise and steer itself away from it.
2. Chikou Span vs Price Action.
Bearish: The lagging span descending towards historical price candles and crossing downwards is a bearish confirmation and usually a sign of exhaustion of an asset.
Bullish: As this is a lagging indicator, it could be nothing more than just a trend analysis rather than a prediction of future movements.
3. Tenkan Sen vs Kijun Sen
Bearish: Tenkan sen is threatening to cross the Kijun sen, especially if the crossing is below the Kumo cloud.
Bullish: No crossover is yet seen. Also, even if there is a crossing, it will occur way above the Kumo cloud.
4. The Kumo Cloud (Senkou Span A + Senkou Span B)
Bearish: A thin cloud means the support level of the Senkou Span A is deemed weak -- may break anytime.
Bullish: The cloud is widening at the ends, and as Span A moves further away from Span B, a strong trendy green cloud is created.
So what does all the above mean? Why am I dissecting both bearish and bullish scenarios here?
Quite honestly, I am still sitting on the fence with $ZIL here, especially with the diminishing volume.
While I use Technical Analysis to try to predict the path of least resistance for price movements, I am simply unable to put a pin on it today.
We may be at an inflection point, where the price is so sensitive that it could move either way at a moment's notice.
I would like to call it 'Price Fragililty', while some may prefer to call it 'Price Volatility'.
Where is the silver lining playbook when you need one, eh?
Until next time, happy trading~
Should we get bullish or do we stay bearish?
Let's take a dive on the Macro level for $ZIL using the Ichimoku Cloud indicator.
For the uninitiated on Ichimoku Clouds, Investopedia has a good introduction here.
With that out of the way, based on $ZIL's macro Weekly chart, here we consider the bearish and bullish signals from this indicator.
1. Price Action VS the Kumo Cloud.
Bearish: This week's candle is threatening to break into the Kump cloud and is within touching distance.
Bullish: It hasn't broken and trade inside the cloud! The near horizontal Kumo cloud means that $ZIL may have a few more weeks to stabilise and steer itself away from it.
2. Chikou Span vs Price Action.
Bearish: The lagging span descending towards historical price candles and crossing downwards is a bearish confirmation and usually a sign of exhaustion of an asset.
Bullish: As this is a lagging indicator, it could be nothing more than just a trend analysis rather than a prediction of future movements.
3. Tenkan Sen vs Kijun Sen
Bearish: Tenkan sen is threatening to cross the Kijun sen, especially if the crossing is below the Kumo cloud.
Bullish: No crossover is yet seen. Also, even if there is a crossing, it will occur way above the Kumo cloud.
4. The Kumo Cloud (Senkou Span A + Senkou Span B)
Bearish: A thin cloud means the support level of the Senkou Span A is deemed weak -- may break anytime.
Bullish: The cloud is widening at the ends, and as Span A moves further away from Span B, a strong trendy green cloud is created.
So what does all the above mean? Why am I dissecting both bearish and bullish scenarios here?
Quite honestly, I am still sitting on the fence with $ZIL here, especially with the diminishing volume.
While I use Technical Analysis to try to predict the path of least resistance for price movements, I am simply unable to put a pin on it today.
We may be at an inflection point, where the price is so sensitive that it could move either way at a moment's notice.
I would like to call it 'Price Fragililty', while some may prefer to call it 'Price Volatility'.
Where is the silver lining playbook when you need one, eh?
Until next time, happy trading~
