*** This is another continuation post (v4) from the previous version, as per my posting methodology where I like to link the trading story where its applicable *** Link supplied below:
MY THOUGHTS: ========================================== Points of confluence: Indicators: ====================== > show downward pressure still present, along the daily, to the weekly charts; > on the daily chart, indicators show downward pressure. If we see the phoeix rsi cross over with a potentially a bullish candle, then it will slow down the downward pressure; The next few days or week will give us a clue. > macd approaching signal for either a bounce\rejection which is likely to be at this 0.382 fib level as per chart or cross over for more downward momentum; Price action: ====================== On the Daily chart, we have the 21 & 50 EMA merging at the neckline of the inverse head and shoulder formation, along with the 0.5 fib retracement, making it a definite case for bulls to jump in. > I expect this level to have strong support, bulls jumping in.
As discussed in previous posts, scenario 1 has completed. Now if the orange support area doesn't hold or this neck line, then we will have scenario 2 with a deeper correction;
Charts to watch\signals ====================== As they have correlations > DXY (US dollar), Volatility\Uncertainty index, VIX, US Treasury Bonds,
Please give me a like or tick for this post.
Regards, S.SAri
VIX S&P
TLT bonds
Daily chart
Weekly perspective
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Comment
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12 hrly chart, small bullish div. Daily has sideways pressure
Comment
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Neckline touched and created a wick on the daily. 2 touches on the daily should confirm support level. Downward pressure on the daily is leveling off which could indicate support and reversal...we need to see the next few days.
detailed mark-up on your chart and nice write-up, keep it up.
I also think we are close to a big move now, but imo we are
ripe for some sort of correction/pullback since the stimulus
is off the tables till after the Election Day, so upside is very limited.
ssari
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@ProjectSyndicate, hence the market is indecisive....maybe flight to US dollar.
BW11
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The 50MA is key support
ssari
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@BW11, yes, it also has confluence on the points I made. "On the Daily chart , we have the 21 & 50 EMA merging at the neckline of the inverse head and shoulder formation, along with the 0.5 fib retracement, making it a definite case for bulls to jump in.
> I expect this level to have strong support, bulls jumping in."
I also think we are close to a big move now, but imo we are
ripe for some sort of correction/pullback since the stimulus
is off the tables till after the Election Day, so upside is very limited.