RE:Reading ChartsIf you look at your daily with the 5 period RSI its supporting the trend though only on average 5 periods. Based on how the RSI is calculated ...sum of gains over period vs sum of losses over period. If it holds over 50 the ave gainers are beating out the average losers or on average we are staying or closing in the higher part of the days trading range on average over the period being measured. So when it bounces off the 50 line its significant in acknowledging if its a bull or bear situation.
Overall as you say we really don't have confirmation of anything and the true trade is to buy the breakout over
over 2.60. And stops can be placed below the 2.50 area for risk management.
Your divergences ...bearish are also there as you say and so the bulls are slowly losing power and as the candles show we keep blowing off or whipsawing over 2.50. But if we break out with those divergences we have a dog is supposed to bark situation and its not barking. Nail that breakout if it happens.
Is the market fully valuing things here based on 2018 earnings and we need to see more growth before we breakout? Not sure but the most healthy thing to happen now is sideways for a bit. Couple weeks or a month etc.
Then breakout. Fundamentally the story appears sound. The market learned all that is new this week and its all held up.
I use the 10 minute for general review over the day but mainly for amatuer hour or the first hour of trading. Strong opens that then are faded after 30 minutes are easily picked up with the shorter time frames.
Good analysis and thanks.