It's always worth paying close attention around 32 and 64. Not just for divergences. It's a common decision point. If there's divergence around 32/64, chances are it's worth taking (open or close). Today's action showed that, as well as RSI being O/S O/B.Finirama said:
tradesmart
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tradesmart
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Excellent call Finirama - should we address you as 'Mystic Meg' from now on.....!?! :cheesy:
If you start a 'follow my trades' thread I'll be taking it very seriously........
Regards
If you start a 'follow my trades' thread I'll be taking it very seriously........
Regards
tradesmart
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Just holding onto support into the close, but I'm not convinced the low will hold. Two channels of thought ( no pun intended). One - resistance failed to touch, so flag theory says it will fail. Two - triangle formation will give us a 150 point move on the break. There's a 70 point window to tell us which way it will go......Could end up a nice opportunity which ever way it goes.
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Interesting open.... Always risky jumping on an open PD. Take a closer look today , that provided a good opportunity a short while later. The PD should have got you aware of the possibility of a turn, even though it was short on time ( 20 mins). It was a bull flag too, which broke, broke the 100mA, pulled back to the 100MA, AND 9964 - perfect long entry, just 11 points off the bottom. The exit wasn't too hard either, giving an ND top, along with a fail to break 32. IF you missed that, and rode the 20 point pullback, your second chance came as the top rolled over at 30. Your LAST chance out. ( three strikes and you lose!)
At this point, 10010 was support. As that failed,under the 100MA, and pulled back, it should have signalled a short...... Riding the bear flag was easy, with 10 point swings, and that should have given you T1. The double bottom at 9941and double divergence should have signalled a cover. Why hold till the second bounce? Well, T1 was met in a single move, showing strength. The move could easily have continued to 9917 ( pullback to 57, minus 40), so well worth the risk in waiting. Also, from such a steep drop, it's unlikely thet the move will fly back up.... except when it's news driven.....
At this point, 10010 was support. As that failed,under the 100MA, and pulled back, it should have signalled a short...... Riding the bear flag was easy, with 10 point swings, and that should have given you T1. The double bottom at 9941and double divergence should have signalled a cover. Why hold till the second bounce? Well, T1 was met in a single move, showing strength. The move could easily have continued to 9917 ( pullback to 57, minus 40), so well worth the risk in waiting. Also, from such a steep drop, it's unlikely thet the move will fly back up.... except when it's news driven.....
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Looks like it's trying to form some sort of base, but at the mo. it's stuck in a range of c. 200 pts
9900 to 10,100
We could have another leg down or up to 10,370- imho .Some of the indicators suggest an upward thrust- so we'll have to wait & see which way it breaks.
9900 to 10,100
We could have another leg down or up to 10,370- imho .Some of the indicators suggest an upward thrust- so we'll have to wait & see which way it breaks.
