From November 25th to Jan 2nd we were in a nice accumulation faze on the daily chart. Starting Jan 3rd the up trend started. We are now at around 9.6k with no resistance until we get to around 10.5k.
If we get to 10.5k we may easily break through that resistance because what it looks like forming is a "Golden Cross" not just any golden cross but the alpha and omega of crosses the 50 day and 200 day moving average cross! These are the most important Moving averages in trading!
"In the trading world, a Golden Cross occurs when the 50 day moving average rises above its 200 day average. This is typically a telltale sign of bullish sentiment for a stock, reinforced by high trading volumes. Technical traders will often buy stocks in the moments following a Golden Cross and sell when the trend reverses into a Death Cross."
So..what im trying to convey is that we may not stop at 10.5k, we may breeze past it.
Like I always say, trading is a probability game. That means nothing is certain. If the probability of a "golden cross" occurring is 85% for instance that means there is a chance of 15% that it may not occur at all. 15% doesn't sound like much. If you play poker a lot countless times have you had even better odds of winning like 90% or more...and then that one outer comes and bites you in the butt. Happens all the time. Unlike poker you can protect your self from big losses by getting out when poop hits the fan or by placing your stop loss! Always protect your money at all times and good luck!
If we get to 10.5k we may easily break through that resistance because what it looks like forming is a "Golden Cross" not just any golden cross but the alpha and omega of crosses the 50 day and 200 day moving average cross! These are the most important Moving averages in trading!
"In the trading world, a Golden Cross occurs when the 50 day moving average rises above its 200 day average. This is typically a telltale sign of bullish sentiment for a stock, reinforced by high trading volumes. Technical traders will often buy stocks in the moments following a Golden Cross and sell when the trend reverses into a Death Cross."
So..what im trying to convey is that we may not stop at 10.5k, we may breeze past it.
Like I always say, trading is a probability game. That means nothing is certain. If the probability of a "golden cross" occurring is 85% for instance that means there is a chance of 15% that it may not occur at all. 15% doesn't sound like much. If you play poker a lot countless times have you had even better odds of winning like 90% or more...and then that one outer comes and bites you in the butt. Happens all the time. Unlike poker you can protect your self from big losses by getting out when poop hits the fan or by placing your stop loss! Always protect your money at all times and good luck!