2015/01/31
GU is in a powerful bearish downtrend, but is approaching the support of a monthly range near 1,5. The pair is now consolidating at that level, and lower timeframes are starting to give bullish signals.
On the bearish side : Watch for sell signals between Daily SMA20 and SMA 40. Sell confirmed breaking (Break out+pull back +signal) of last low.
On the bullish side. Buy any signal between 1,495 and 1,503. Buy confirmed break out of daily SMA40.
On the monthly Timeframe GU has been ranging since 2009. It is currently at the bottom of the monthly range. The move from the top (resistance) to the bottom (support) has been very straightforward, with seven consecutive bearish candles. The last bearish candle is a strong that broke a rising trendline support, but also showed a downwick indicating some consolidation is now taking place.
The weekly TFs shows a very powerful and oversold bearish trend, with a bullish divergence ont he stochastic oscillator. The last candle is a bullish spining top which gives us a bullish harami pattern. Note that the last candle also made a new high, and that we are near 1,5 psychological level.
The Daily TF shows we are consolidating (ranging). The last candle is a doji, nearly a dragonfly. Daily SMAs 20/40 have been acting as resistances of the bearish trend. The pair is obviously having trouble breaking down the last daily low at 1,50334. On the bullish side It failed at completing an inverted head and shoulder but may try again very soon.
