Last week I published a chart showing bullish divergence with MFI, now there is both divergence on MFI and RSI on the daily chart. I was thinking that the price would rally starting last week, but obviously that did not happen. I'll be waiting for stochastic RSI to give a signal before looking for an entry point... right now it's trying to figure itself out. I am again cautiously optimistic that the price will start to rise.
Looking at volume, the moving average is starting to level out and even starting to rise on the daily chart. This isn't the big volume spike that I would like to see for a true reversal, but it is nice to see the steady drop-off in volume that has been going on since January starting to slow down. Maybe it's only temporary, will be keeping and eye on it.
Sentiment is certainly at a low. For the contrarian trader, this is also a bullish indication.
Like I said before, I am cautious, but I think that the bottom may be in. The bear market may be ending, and a long march to new all time highs may be beginning.
I'm looking at the 7100 level (past support) as the next major resistance level if we start to rally. If my theory all falls apart, then I'm looking at the 5800 (previous support), 5000 (big round number), and 4200 (1.618 extension) levels for future lows.
Do your own analysis of course!
Take care and happy trading!
Looking at volume, the moving average is starting to level out and even starting to rise on the daily chart. This isn't the big volume spike that I would like to see for a true reversal, but it is nice to see the steady drop-off in volume that has been going on since January starting to slow down. Maybe it's only temporary, will be keeping and eye on it.
Sentiment is certainly at a low. For the contrarian trader, this is also a bullish indication.
Like I said before, I am cautious, but I think that the bottom may be in. The bear market may be ending, and a long march to new all time highs may be beginning.
I'm looking at the 7100 level (past support) as the next major resistance level if we start to rally. If my theory all falls apart, then I'm looking at the 5800 (previous support), 5000 (big round number), and 4200 (1.618 extension) levels for future lows.
Do your own analysis of course!
Take care and happy trading!