I’m following the open of the FDAX this morning, which saw the Nikkei down another 3.7% overnight.
Intraday we’re standing right at the cliff. Another attempt to break 8300, with new lows just made and a bounce back above 8300. Looking at the daily (upper left chart) I see the Tenkan-Sen at 8167. That’s far away for now, but a level to keep in mind. So I’m taking a look at a 8h chart and here I see a steep cloud coming into play in the next 2 days. This cloud was formed by the impressive uptrend in May, which tells me, there will be a lot of buyers, who missed that last move or who will be buyers again after a dip. Even if everything screams Short, as every oscillator tells us we are overbought, I don’t think so. For now we are consolidating in an Uptrend, which means every dip will be bought again.