Ichimoku Market Update: Kuwait Stock Market Warning. November 2014, the Kuwait stock market changed its long term sentiment to bearish and started a major trend that went from 1140 to 765.00. Jan 2016, the market made a bottom at 765 and started to move upwards for a pull back.
In order for some of the downside movement to be recovered, a major pull back needed to occur. The resistance controlling whether a major pull back would occur is at 859.80. A number of attempts were made to break this resistance and start the major pull back but that never occurred. Here is a weekly chart provided by eSignal.
From the weekly chart, price tried to break the resistance but failed. Now, price is starting to move down the probabilities to retest the low are increasing drastically now.
Below is the Daily chart. Let’s see how the daily is influencing the weekly time frame.
The daily time frame sentiment is still not bearish yet but will be in a couple of days. From the daily, the next major support is around 817.00. This support is controlling whether price will retest the low or not. All the lower time frames are now setup to start a bearish trend so there is high probability o reaching this support in May/June.
EDUCATIONAL USE. Commodity Futures Trading Commission, Forex, Futures, Equity and Options Trading has large potential rewards, but also has large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provided on the Blog is for educational purpose