One day ago it may not have been clear where the market was going, but many indicators were screaming "BUY!" The leading indicators (PSar, RSI, Stoch) about the same time indicated a clear buy. A few hours later even lagging indicators (EMA, MACD) were crossing over giving buy signal.
Now a day later BBands just broke upwards and are starting to fall on the eventual support of the BBand. Usually when with this big moves up BBands are also quite quick to move, but lag behind. So say in a few hours the new support base will be formed.
The PSar is going to give a sell signal here really soon. I see it being rather flat to indicate slow downward movement. Now the RSI may fall just for a short time below 50, but then go above. This would indicate not enough sellers to keep pushing price down. The next few all the indicators will start becoming rather flat until the next breakout occurs. MACD convergence and divergence will not be great which is a good sign of a ranging market.
Now, if a sudden breakout down occurs I would set a stop loss of about 555 area or just a little over 5%. Like we just saw the breakouts occur fast if you aren't there to pay attention. I was making eggs, toast and having a bowl of Cheerios when this happened.
Now a day later BBands just broke upwards and are starting to fall on the eventual support of the BBand. Usually when with this big moves up BBands are also quite quick to move, but lag behind. So say in a few hours the new support base will be formed.
The PSar is going to give a sell signal here really soon. I see it being rather flat to indicate slow downward movement. Now the RSI may fall just for a short time below 50, but then go above. This would indicate not enough sellers to keep pushing price down. The next few all the indicators will start becoming rather flat until the next breakout occurs. MACD convergence and divergence will not be great which is a good sign of a ranging market.
Now, if a sudden breakout down occurs I would set a stop loss of about 555 area or just a little over 5%. Like we just saw the breakouts occur fast if you aren't there to pay attention. I was making eggs, toast and having a bowl of Cheerios when this happened.