MOEX needs to break above 156 for a healthy bullish setup
First let's take a long term view, MOEX on Monthly chart has made a huge 4 year cup after a great 4 year run:
We are currently breaking out of the cup formation, long-term this is bullish.
Now let's zoom into daily chart:
* Early Oct, I thought MOEX was breaking out of a ascending triangle , but it was a fake out and nose dived ramping through 50MA.
* Fortunately it made a W bottom and now about to take out ATH . This is a critical juncture. For MOEX to continue the current bullish trend , it needs to take out the previous ATH @156 on good volume .
- If it does so, then the bull trend gets a big green light and we are going to see more ATH in the near future.
- If it fails, then expect more consolidation in the rectangle between 131 and 151. Four years ago, the ATH was at 138 so I'd not be surprised to see more consolidation around this price point. RSI is currently overbought, previously when RSI reached this level, a correction usually follows. So finger crossed and hope MOEX takes out ATH first and advance far enough before a correction.
We are currently breaking out of the cup formation, long-term this is bullish.
Now let's zoom into daily chart:
* Early Oct, I thought MOEX was breaking out of a ascending triangle , but it was a fake out and nose dived ramping through 50MA.
* Fortunately it made a W bottom and now about to take out ATH . This is a critical juncture. For MOEX to continue the current bullish trend , it needs to take out the previous ATH @156 on good volume .
- If it does so, then the bull trend gets a big green light and we are going to see more ATH in the near future.
- If it fails, then expect more consolidation in the rectangle between 131 and 151. Four years ago, the ATH was at 138 so I'd not be surprised to see more consolidation around this price point. RSI is currently overbought, previously when RSI reached this level, a correction usually follows. So finger crossed and hope MOEX takes out ATH first and advance far enough before a correction.