Jan 18, 2011

Short term update

DJ hit the target - see the hourly chart. At the same time DJ is hitting the upper channel line on the daily chart too.
With all the warning signs and overbought indicators the risk is high. That does not mean that prices could not crawl along the upper channel line on the hourly/daily chart for a while. This scenario is shown on the hourly chart bellow

Jan 16, 2011

Weekly review / Седмичен преглед

Hello traders!!!
Last week played out as expected. For the next week I expect the same scenario.
Be careful the 15-min chart show some divergences, we may see a correction before moving higher. On the hourly chart MACD is still above the zero line and the histogram is rising. So I do not expect a trend reversal before another rise.

The big picture has not changed. You can see the weekly chart from last week. We are at resistance level and the divergences on the market breadth indicators are saying... we will see a serious correction at least several weeks.