YUM just had its bullish indicators aligned.
1. Tenkan sen has cut Kijun sen
2. Price level is just below kumo resistance (Will it breakout?)
3. Chikou Span is just below price levels with possible resistance at $36
4. On the Ichimoku Weekly Chart, we can see that there is long period of accumulation and the stock has been trading within a range.
3PAR (PAR) has a bullish crossover with Tenkan sen cutting the Kijun sen on September 11. That is confirmed together with a accumulation signal from the Chaikin Money Flow indicator.
At that point, immediate resistance is expected from the kumo at 10.67
However, it only takes 2 weeks for 3PAR to breakout of the resistance. From the Chaikin Money Flow indicator, we can see that there is more accumulation going on.
At last closed, 3PAR is trading at 11.70 with possible resistance at 12.51 from its high back in July.
As mention on September 29, it is not clear what has changed since then.
I have a small position and may continue to accumulate. However, at this level, I will go with Covered Call to minimise my downside risk.
On the Ichimoku Weekly Chart, SPX is showing signs of forming a base between 1010 and 1080.
At this moment, the Chaikin Money Flow indicator is not showing any signs of distribution.
Looking ahead, we see a flat kumo top. This suggest that there will be support at 990 but at the same time, it also suggests that SPX may also trade at the level in the coming 2-3 months (flat kumo is a sign of equilibrium which ‘attracts’ price level to grativate towards it)
I will still stick to my point that we are now in a ‘trendless state’ as the price level is inside the kumo and the leading kumo is flattening off. This has been highlighted in my previous post dated August 20 when the price level enters the Weekly Kumo.
