The current bullish trend of dash will be tested this month. Currently the buying momentium has halted and the price is in a consoldation stage. You can see both the Tenkan Sen (blue) and Kijun Sen (red) flat which confirm consolidation. In the next few days the cloud (kumo) is quite thin and there is a kumo twist. This is often a time of upward resitance.
When the cloud is thin it signals weak support. A bullish continuation pattern would be a test of the Kijun Sen (red) on the daily chat. If the price is able to bounce off of this and then continue up then that is a very bullish sign. We could even see sideways up untill after Aug 28th when there is the chance for the price to test the daily kumo cloud. When the cloud gets flat like it is around the 28th that often shows an area that will be tested by the price. Here a test of the top of the cloud and then upwards would be a bullish sign.
On the downside a bearish cross of the Kijun Sen over the Tenkan Sen with a failed test of the cloud and the price under the cloud would be a bearish sign and we could then expect lower prices. If you would like to learn more about the Ichimoku Cloud then check out this link http://www.investopedia.com/articles/forex/06/ichimoku.asp
When the cloud is thin it signals weak support. A bullish continuation pattern would be a test of the Kijun Sen (red) on the daily chat. If the price is able to bounce off of this and then continue up then that is a very bullish sign. We could even see sideways up untill after Aug 28th when there is the chance for the price to test the daily kumo cloud. When the cloud gets flat like it is around the 28th that often shows an area that will be tested by the price. Here a test of the top of the cloud and then upwards would be a bullish sign.
On the downside a bearish cross of the Kijun Sen over the Tenkan Sen with a failed test of the cloud and the price under the cloud would be a bearish sign and we could then expect lower prices. If you would like to learn more about the Ichimoku Cloud then check out this link http://www.investopedia.com/articles/forex/06/ichimoku.asp
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