Good morning everyone. Today I am looking at the 1 hr time frame and I see we jumped to approximately 8570 while I was asleep and have since settled to 8475. Nice work bulls. There are a few things that could explain the rise on multiple time frames. I will discuss a few here today.
Lets take a look at the hourly chart. There was a pretty big ascending triangle formation that we have been consolidating inside of for a few days now. I drew the pattern on the chart. We got to the end and there was a break out. The bolinger bands were also tight at this point on the 1hr and the 4hr. All day yesterday I watched the candles fight with the 1hr 50 MA and at the last minute the candles did conquer the 1hr 50 MA and we shot up as a result once we exited the cloud and the triangle pattern.
Speaking of clouds if you look at the daily chart we literally just exited the cloud after yesterdays close. Once traders saw that the confining nature of the cloud was not a factor on the daily anymore the price rose significantly. This is a reason I enjoy using the cloud.
All in all the rise was nice. I would love to see some more today but we will have to watch the charts. The RSI is just over bought on the 1hr and possibly other smaller time frames. Even the daily RSI is high at the moment. Oh well. At least the market has some life in it. Lets see what Tuesday will bring us... WTFDIK
Lets take a look at the hourly chart. There was a pretty big ascending triangle formation that we have been consolidating inside of for a few days now. I drew the pattern on the chart. We got to the end and there was a break out. The bolinger bands were also tight at this point on the 1hr and the 4hr. All day yesterday I watched the candles fight with the 1hr 50 MA and at the last minute the candles did conquer the 1hr 50 MA and we shot up as a result once we exited the cloud and the triangle pattern.
Speaking of clouds if you look at the daily chart we literally just exited the cloud after yesterdays close. Once traders saw that the confining nature of the cloud was not a factor on the daily anymore the price rose significantly. This is a reason I enjoy using the cloud.
All in all the rise was nice. I would love to see some more today but we will have to watch the charts. The RSI is just over bought on the 1hr and possibly other smaller time frames. Even the daily RSI is high at the moment. Oh well. At least the market has some life in it. Lets see what Tuesday will bring us... WTFDIK