The quick and dirty of this chart shows that there is a double top that is currently forming. Will it sustain? Possibly and I will see what happens tomorrow before making any plays. This has the potential to not only blow through one but two of the recent formations of short-term bullish trends which wouldn't be a good case for the bulls anymore. Many of the indicators are now flashing bearish divergences across the various timeframes which further strengthens the case. The news to look out for tomorrow is oil as OPEC is meeting. That could drive the market higher if they come to an agreement. Good for energy, bad for the bearish case.
Volume for the close of today also not reassuring for a bullish case.
I would like to point out that there are some missing gaps, which is due to the fact that I am not subscribed to real-time data on TV. Rest assured this isn't the case with my brokes data.
Indicators
Summary
There is a strong case for the continuation for the bull trend but the technicals are something to keep an eye on over the coming days. Many bearish divergences as we hit the same resistance zone twice and got rejected from it. Oil will be the news to watch tomorrow right after open, so be mindful of that before making any entries. The energy market could drive us higher. Wait for a break of the trend for confirmation.
Stay safe and remember to wash your hands and don't touch your face!
Good trading and much love!
Volume for the close of today also not reassuring for a bullish case.
I would like to point out that there are some missing gaps, which is due to the fact that I am not subscribed to real-time data on TV. Rest assured this isn't the case with my brokes data.
Indicators
- RSI – Bearish divergence between the two resistance zones. This is showing that momentum is starting to fail.
- StochRSI – In the overbought territory but I would wait for an exit of that to make plays less you get stopped out if the market rockets off to space.
- MACD (not shown) – Flashing across many timeframes up to 4 hours of a bearish divergence. A bearish crossover of the averages looks to be happening across the timeframes up to 4H and momentum is quickly fading.
Summary
There is a strong case for the continuation for the bull trend but the technicals are something to keep an eye on over the coming days. Many bearish divergences as we hit the same resistance zone twice and got rejected from it. Oil will be the news to watch tomorrow right after open, so be mindful of that before making any entries. The energy market could drive us higher. Wait for a break of the trend for confirmation.
Stay safe and remember to wash your hands and don't touch your face!
Good trading and much love!
Comment:
Bulls broke through the support easily. The pattern is now invalid but there still is some bearish RSI divergence but it is quickly vanishing. Expecting more sideways action with some light declines next week.