4-Hour Chart ACLS UPDATE: Inverted Head and Shoulders
ACLS is making an Inverted Head and Shoulders Pattern; seen on a daily and 4-hour chart:
Step 1: ACLS broke out downward trend line and
Step 2: made a high,
Step 3: fell to the back of trend-line support, which is also at a 50% fib to 61.8%. Closed green with market indecision candle with higher volume that usual. Some would consider this a hammer because the higher wick is much smaller than the lower wick. It is a weak hammer. I'll wait for another sign if it shows.
Thus, support is between 2.39 and 2.44 (between 50% 618% fib). The 61.8% fib also happens to be within my previous BUY ZONE.
Speaking of the BUY ZONE. It is now at the lower backside of the downward sloping trend line in conjuction with the support levels on the chart.
Volume and Price Analysis:
Look at that long 2nd to the last red candle with lesser volume than the previous candles. Then Bull volume came in at support as bears failed to further drive the price down, which ended in a small-bodied green candle that looks hammer-ish with very high relative volume. Thus, price & volume don't match! This suggests that the bid was moved down to see if there was buying interest at lower prices (and there was). I expect to continue to see this as the bear erode at these support levels.
Step 1: ACLS broke out downward trend line and
Step 2: made a high,
Step 3: fell to the back of trend-line support, which is also at a 50% fib to 61.8%. Closed green with market indecision candle with higher volume that usual. Some would consider this a hammer because the higher wick is much smaller than the lower wick. It is a weak hammer. I'll wait for another sign if it shows.
Thus, support is between 2.39 and 2.44 (between 50% 618% fib). The 61.8% fib also happens to be within my previous BUY ZONE.
Speaking of the BUY ZONE. It is now at the lower backside of the downward sloping trend line in conjuction with the support levels on the chart.
Volume and Price Analysis:
Look at that long 2nd to the last red candle with lesser volume than the previous candles. Then Bull volume came in at support as bears failed to further drive the price down, which ended in a small-bodied green candle that looks hammer-ish with very high relative volume. Thus, price & volume don't match! This suggests that the bid was moved down to see if there was buying interest at lower prices (and there was). I expect to continue to see this as the bear erode at these support levels.
Capturing the swings of the stock market & currency market. It's a dirty job and equity/currency traders must do it.