DNL: Bullish mood on daily chart

We have seen DNL broke the triangle last week as it continue to move up and didn’t confirm the Doji candlestick which could have been the reversal point. Instead of showing bearish sentiment after the Doji, it created a large greencandlestick which convinced us of the bullishness of DNL. It also broke the 78.6% Fibonacci Retracement level in the process. Now that we are near our previous high at 6.91, we may experience some resistance. Another reason why it may retrace is the RSI or Relative Strength Index which is at overbought level. It is higher than the RSI when it hit 6.91 last October 2013

Lastly, we also have a Bearish Meeting Line pattern which suggests that there is a stalemate between the bulls and the bears. If this will be confirmed on the following day then we will see DNL go back and find support near 6.71 If this will not be confirmed then we might see DNL go up with possible target near 7.16

Ichimoku system on daily chart is telling us that DNL is in bullish mood with the latest green signal created by the Kumo breakout last Tuesday. Our weekly chart has only one bullish signal and that is the Kijun Sen Cross. This is considered Neutral Bullish signal because it is done inside the Kumo.

Caveat!