Due to time lag update we are missing one candle here, DJIA actually closed at 17554.47 22 days ago, when DJIA closed as a DOJI, i posted "when it gets TOO bearish" chart. Based on S/R region, i would expect bear challenger to pops up around 16027-16107. And it did. Though price broke down momentarily below 16027 on intraday, price did a huge swing at later session to create long lower tail. Thats when the bulls gain total control. By end of Friday trading day, we would have a full 3 weeks of bull. At this junction, i notice that price broke out of the resistance level, indicators are giving a little bit of mix signal. Price is making a higher high relative to 19 Sept, CCI & RSI are in fact turning a bit southward. MACD has broken the resistance line, but my take is the red line is still below that resistance
If the potential bull trap is for real, we could see "bull challenger" coming around 17600-17700, which means that i need a big red back to give a close of at least back to 17400 to complete a potential "Evening star"
Comments
pride
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sorry my friend i was confuded i want to post it to another artikel! sorry!
jangseohee
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No worries, :-) i am open to constructive opinion
pride
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he last 2 big corrections 2000-2002 and in 2008 are very huge and unusual.. 3rd time in arow droping like these before i think the possibility is below 1%.if corrects from here expect a similar move like 2011..i dont agree with your analysis think the most possible is that the bull will contunue or sideways action till the next leg up.
jangseohee
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No worries, my analysis will not be 100% right. And no one's will :-)
maccabean
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I agree, this rally does not convince me one bit. The fundamental reasons for the recent pullback have not been dealt with.
jangseohee
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During the topping process which will take awhile, there is bulls vs bears to take the only Throne to gain FULL control. So a lots of bulls will betray and collude with bears and vice versa, and both side of betrayers are cleansed during a wild upswing and downswing... currently my 200+ position are starting to be in REd...:-)