Bullish Ascending Reversal Pattern
Updated
Ascending triangle looks set to incur 6th touch point. From here we either go up the height of the triangle or down the height of the triangle. Down sends us to 56xx which I can’t see happening.
Four hour chart Bullish indicators:
Trading above Ichimoku cloud
Tenkan / Kijun Cross
Ascending triangle pattern
5 EMA / 20 EMA cross
50 EMA / 100 EMA cross
Neutral Indicators:
MACD is almost oversold and possible bearish cross coming (still neutral at time of writing however)
RSI (has plenty of room for growth)
Aroon Up/Down
Targets:
7400 first target
7589 second target (100 EMA on daily)
7800 ultimate target (this doesn’t mean we will get there in one hit)
Four hour chart Bullish indicators:
Trading above Ichimoku cloud
Tenkan / Kijun Cross
Ascending triangle pattern
5 EMA / 20 EMA cross
50 EMA / 100 EMA cross
Neutral Indicators:
MACD is almost oversold and possible bearish cross coming (still neutral at time of writing however)
RSI (has plenty of room for growth)
Aroon Up/Down
Targets:
7400 first target
7589 second target (100 EMA on daily)
7800 ultimate target (this doesn’t mean we will get there in one hit)
Note
Note: When we have our bullish breakout then our entry point for a long is on the retest of 6750-6800 level. It is probable that we will retrace from around 7400 (our first target). Though bare in mind, that whatever target we reach we WILL retrace to re-test the 6800 level as support (this is a key level) so don't feel like you are missing out. My advice is to wait for this retest to go long. This will save you from going long on what could end up being a fakeout (I don't think this will be a fakeout - but a smart trader always waits for an appropriate trade set up and entry point).Note
It's likely we will have our 6th and final touch point of the resistance line of the ascending triangle within the next 1-2 four hour candles. We have the 20 EMA converging here as well which should give us with extra support. Provided it holds we are looking set to break out within 24 hours. The longer we range the more explosive the move. Note
We have had our 6th and final touch of the resistance of the triangle:Note
We broke to the down side of the ascending triangle, and have pierced through the 100 EMA on the hourly, however it is currently holding. Looking at the four hour chart, if we drop through the hourly 100EMA we next have the four hour 50EMA at about 6580; as well as the 100EMA just below that at 6530. If these levels fail to provide support then 6480 is my next level I would be looking for support at. This could then provide an inverse head and shoulders pattern and set us up for an alternative long entry point as shown in green:
Regardless; we still wait for our entry point before placing a trade.
Note
Four Hour Chart:50 MA / 200 MA bullish cross over
This cross over intersects with the 50 EMA and the bottom of the channel we are in.
This means we have a lot of support around 6590. This is our last line of defense to try and break through the 6800 level. if this level fails then down we go.
Note
Four Hour Chart: Forming inverse head and shoulders pattern as per my first analysis. As you can see we have the demand zone still below us so we shouldn't sink any further down than 6250 is we fall further. On the run back up the supply zone is unlikely to hold so we should see a breakthrough finally. From there we have two options. The most risk adverse is to wait for the retest of the 6800 level as support and then buy off the bounce. The second more risky option is to buy on the breakout of 6800. 
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