The first warning of a potential reversal of the upward trend in short term was activated twice since the last scan of 23 April. That is to say that support short-term moving average of seven days has been battered by the bottom two again, but this break has not been validated by following the curve of points in the Dow Jones. Somehow, the first red light sinctiller, but the green light came back later.
But most important is that the second light validation reversal of the uptrend is never passed to the red . This second lighthouse intelligence short term takes the form of the support area of 10.988 points, this support has not been smashed at the bottom, then upward integrity of the index is still valid now .
On 23 April I wrote: "The early signals bearish reversal will occur by the breaking of the 9-day moving average which is currently an excellent support, then by Following breakage of the support area of 10.988 points. "
Large black or white candles that are currently on the graph to day, represents very well the volatility and indecision of the market reacting very aggressively to the continuing flow of positive news or negative. For almost three months that the index is within a wave bullish short term, while the large candles (Marubozu) represent the volatility of various market participants who make a strategic retreat, then return in force at the slightest jolt positive . This thriving and
this volatility can not possibly be rational and controlled efficiency of financial markets is a beautiful chimera, but structures the graphics with support and resistance zones you make rational irrationality somehow you make visible the structure of the matrix ...
previous analysis
http://observateurtechniqueindices.blogspot.com/2010/04/dow-jones-23-avril.html
Posted by Claude Bordeleau
But most important is that the second light validation reversal of the uptrend is never passed to the red . This second lighthouse intelligence short term takes the form of the support area of 10.988 points, this support has not been smashed at the bottom, then upward integrity of the index is still valid now .
On 23 April I wrote: "The early signals bearish reversal will occur by the breaking of the 9-day moving average which is currently an excellent support, then by Following breakage of the support area of 10.988 points. "
Large black or white candles that are currently on the graph to day, represents very well the volatility and indecision of the market reacting very aggressively to the continuing flow of positive news or negative. For almost three months that the index is within a wave bullish short term, while the large candles (Marubozu) represent the volatility of various market participants who make a strategic retreat, then return in force at the slightest jolt positive . This thriving and
this volatility can not possibly be rational and controlled efficiency of financial markets is a beautiful chimera, but structures the graphics with support and resistance zones you make rational irrationality somehow you make visible the structure of the matrix ...
previous analysis
http://observateurtechniqueindices.blogspot.com/2010/04/dow-jones-23-avril.html
Posted by Claude Bordeleau
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