Breakout (or Breakdown) coming.
Recommendation: ENTER IN BREAKOUT DIRECTION
Current Trend: Short-term sideways to up. Med and long-term up.
Strategy: Go long a close above 56 485/Or sell short a close below line 5 – first to happen.
(Daily) Signals done on alsi future
Chart Setup: The index continues to hold up for now. Lines 5 and 6 (blue lines) form a symmetrical triangle. This is also a potential H/Sh; or it might become a H/Sh continuation pattern (bullish). There is a chance of one more rally here before the drop comes. But know that it can break out in either direction – by the end of this week we’ll have more clarity on that).
- Its short-term Stochastic is neutral, but its weekly Stochastic (not shown) is overbought.
Strategy Details: A close above 56 485 (blue dotted line at 12th Sep. high), will be a long signal. Conversely, sell short if it closes below line 5 (below 55 280). Do whichever happens first. (Execute the trade on the alsi future once triggered above).
Target: An upside breakout will point to 57 700 (the height of triangle projected up). While a close below line 5 will point to 53 800. (Line 3 support is at 53 980, to start taking profits on shorts).
Stop-loss: For a long signal, it’s a close below 55 600. Then a prior one-day low from 57 500. For a short signal stop is a close above 56 050. From 54 000 lower stop to a breaking of its prior two-day high.
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