For sure it looks less bearish now after two days of massive short covering. Bit it is NOT bullish at all!
Weekly:
- Ichimoku setup -> Bearish
- Major trend is bearish!
- Heikin-Ashi shows indecision so far this week. haDelta up to zero, but its SMA3 is still below.
- upper key supp/res is Kijun Sen at 2993. Lower bearish resistance is 2800.
- EWO is bearish
Daily:
- Ichimoku setup still has a bearish bias! Price retesting Kijun and forward Senkou B. This setup can not turn bullish until Price trades below 3000-3050.
- Heikin-Ashi is swing bullish, with strong momentum in last 4 days. But Price reached important support resistance zone, and haDelta hits a relative high level. Momentum will most likely slow down here in comeing days.
- EWO is bearish
Brexit or Bremain? In case of Bremain we can see strong rally to 3200... but in case of Brexit... well I doubt 2800 will help anybody who is left long.
As I wrote before on Twitter, not Brexit odds and polls what are important here. I think the question is which position can people stop easier and what would cause the bigger pain? Since most of bears got grilled in last few days, how do you think the liquidity is going to be in case of a "Leave" outcome? How do you think the whole world which is naturally massive long in equities would be able to exit? On the opposite side, I think it would be lot easier to cover shorts, or there will be still enough time and good levels to enter longs again if you wish.
I think the better risk/reward is to keep neutral or small short position before the vote. But not long! Being long risk is a gambling here!
Weekly:
- Ichimoku setup -> Bearish
- Major trend is bearish!
- Heikin-Ashi shows indecision so far this week. haDelta up to zero, but its SMA3 is still below.
- upper key supp/res is Kijun Sen at 2993. Lower bearish resistance is 2800.
- EWO is bearish
Daily:
- Ichimoku setup still has a bearish bias! Price retesting Kijun and forward Senkou B. This setup can not turn bullish until Price trades below 3000-3050.
- Heikin-Ashi is swing bullish, with strong momentum in last 4 days. But Price reached important support resistance zone, and haDelta hits a relative high level. Momentum will most likely slow down here in comeing days.
- EWO is bearish
Brexit or Bremain? In case of Bremain we can see strong rally to 3200... but in case of Brexit... well I doubt 2800 will help anybody who is left long.
As I wrote before on Twitter, not Brexit odds and polls what are important here. I think the question is which position can people stop easier and what would cause the bigger pain? Since most of bears got grilled in last few days, how do you think the liquidity is going to be in case of a "Leave" outcome? How do you think the whole world which is naturally massive long in equities would be able to exit? On the opposite side, I think it would be lot easier to cover shorts, or there will be still enough time and good levels to enter longs again if you wish.
I think the better risk/reward is to keep neutral or small short position before the vote. But not long! Being long risk is a gambling here!
