USDTRY – Marabuzo lines platform gains
9th August 2016
I wrote on these pages last year the usefulness of Marabuzo lines in riding a bull trend in USDTRY.
That bull trend ended at the beginning of this year after the market topped in January at marginally lower levels to Sept 2015 – a negative signal that confirmed an already bearish warning seen in the RSI indicator.
However, demand, a new bull trend was confirmed for USDTRY with April’s strong move higher, through the 21 week moving average, which was confirmed by RSI also moving through it’s equivalent average.
In addition we can see that the fall from this year’s peak stalled in the upper area of the weekly Ichimoku Cloud pattern with Aprils renewal of USDTRY buying taking prices back outside the upper end of the Cloud – which has since been operating as a support.
So, we’re back to a situation where Marabuzo lines can be used to support a bullish view/position. The first one formed with April’s gains is at 2.8610 and that did limited the May/June setback.
The second, 2.9525, was formed by the improvement posted 4 weeks ago and we look for the current profit taking to be limited close to that area – which also comes marginally above the top of the Cloud.
Confirmation of the next leg higher would come with a break above 3.0300 with USDTRY then focusing on last month’s 3.0975 peak and a projected 3.1190 point.
