Friday, October 24, 2014

Price captured the 50 SMA on the daily, but this is still one 5-wave push up

On the 1-hour chart, one can clearly see that this is a single 5-wave push up structure: We observe overbought conditions on the RSI(14) and price/MACD or RSI divergence!

The divergence needs to be resolved before this push up becomes appreciable.

So the buy signals on the daily and the weekly need to be taken with a grain of salt at this point.

An 1-2-3 set up needs to develop before a new up trend with legs is established - but not yet. It will require a significant pull back before a breakout above this week's high.





No comments:

Post a Comment