Reading ChartsLet’s look at the price action for the past week. Year End selling should be done by now and real market forces should be responsible for the stocks movement.
And the good news is we had a positive actions on weekly/daily/60 minutes charts. So, let’s start with the weekly:
Last 2 weeks ended with a Doji (almost a shooting star) and a Hammer. They signal that downtrend is over, at least till the news pop up. Positive news and we’ll shoot up and negative one….well…use your imagination. Resistance 0.28/0.41/0.74. CCI already indicated positive price action was in the books before RSI reacted (CCI acts faster, not better). Faster TSI about to cross to the upside. Not much volume, what’s ok for this time of the year. And remember that people are nibble into oversold opportunities looking to set up profitable trades.
And better news on Daily Chart:
We broke the triangle and price moved ABOVE the KAMA (Old FX2 – could be a time for you to consider a trade?). Stochastics crossed up and TSI, although still in negative territories moves on positive note. We are still within the down trending channel with resistance around 0.32. Like I mentioned week ago, trade could be set up: stop buy at 0.32 with stop at 0.34 in case of sudden move. This is just an example of trading set ups
and NOT sell/buy advice to anybody. Personally would be nice for stocks to move to 0.30-0.31 and retrace to 0.25-0.26 (broken triangle line would become support) before moving up. Great vehicle for a trade
60 Minutes Chart:
Broken Resistance on solid volume. For move to be sustainable price should retrace to 0.255 before going up. But this is just wishful thinking. Market will do what it wants to do. We should just listen to market message and play accordingly. RSI at 92% and CCI 208 – pretty high (but this is 60 minutes price action, so make decisions based on Daily and use 60 minutes chart to get better price).
Merry Christmas to everybody
AND
Happy Trading