this week we had very strong rally and short term momentum has turned UP.
Look at the weekly chart bellow - prices has bounced from the trend line, we have two candles with long shadows(buyers are stepping in), the histogram have higher tower and PpP pattern, Slow stochastic is above 50.
Look at the daily chart (chart three) - we have MACD cross and it has a nice trend line, the histogram is above the zero line.
So with momentum turning UP we must follow the market and be bullish at least for the short term. The bullish scenario is shown on chart two. But the bulls must prove that they are strong. The market has a lot of resistance above this levels, which must be broken. I am skeptical, and I think we will have a correction in September and October. The next 1-2 weeks will show us who is right the bulls or the bears.
I think the scenario shown bellow will play out - an A-B-C correction. But when the market shows bullish signs we must follow the market period. So I will follow the bullish charts shown above until proven wrong. If the prices reverse from the trend line(chart three) and make lower low then I will get bearish again.
No comments:
Post a Comment