I had been following IMI since it bottomed at 4.80 . Here are some of my posts at Bookaka.com. The first one is from January 3, 2017.
Figure 1: Initially, I use Fibonacci lines to determine bounce points
Price had bounced strongly from the 4.80 support level (61.8% Fibo) then rallied .
When it started to develop higher lows, I used trend lines and chart patterns.
Figure 2: Using trendlines and chart patterns to determine breakout points and trend
Price formed a triangle pattern with resistance at 6.20 . Smaller pattern showed a rectangle with the same resistance. On triangle breakout, resistance at 6.50 then 6.75.
Figure 3: Using ranges , Fibonacci and Ichimoku to find confluences and price targets
It had also broken above 8.77 range resistance. On that breakout, target price is at 15.39.
I used ranges primarily to determine the resistance/ target price for swing trading, but used Ichimoku and Fibonacci to find the ultimate target of 29 for trend following.
The chart showed confluences between the range resistance at 8.77 and 23.6% Fibo level, then at the range target of 15.39 and the 50% level.
Figure 4: Using Ichimoku alone to follow the trend.
IMI is still trending upward strongly. Here is the daily chart . Current price is at 11.38. As you can see , it is above the tenkan sen line, indicating strong momentum.
I use Ichimoku alone to follow the trend. When following trends, your primary objective is for support to hold. Resistances take secondary importance to supports.
There is a multi time frame confluence – all time frames agree on the bullishness of IMI.
I showed you the sequence of charts that I used to monitor IMI since January 2017 to illustrate how my trading style changes with respect to the purpose for which the chart is used.
Ichimoku is best used for trending securities, and not for those in a sideways pattern. Thus, while trend is not yet established, use classic tools such as Fibonacci levels and chart patterns.
Ichimoku will hold your hand and guide you to the ultimate price target once trend is established.
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