The last 3 days have been hard to watch, but you always have to keep in mind how much you gained to get here and know you’re just giving back a bit for a time. The primary trend is still intact and we are still inside our new channel that created after Tuesday close. The things to watch is crossing these moving averages and those moving averages turning down. Only the 10 day has been approached and is turning. What is really important is that we hold that first support line at $1344.15. We hit that support, we went though that support, and then came back up and settled above it. This was good and it showed that there are buyers willing to step in. As for their stamina to hold the line of support, is something that we will see in the next few days. One thing to note here, with this pullback since Monday, it has created a new higher high which means that it is the newest line of resistance that we now have to fight back through. That line is the little high bubble price of $1370.58 and it is shown on the chart.
The 30 minute chart shows just how important these support and resistance lines are. A lot of people and computers watch them and use them as selling and buying opportunities. What is import is that in 30 minute increments, you can actually see that first line of support falter and then re-establish itself. Things that concern me is that we are below the 5 day moving average here and right on top the 10. This is just a warning that things could get worse and we would want to run to defense, but for now I think we need more time and data.
As far as my personal stocks, I got hammered the last 3 days and I made a few mistakes that cost me. I mention this because things sometimes get ugly for the entire market when all my stocks get stopped out and the advance decline lines start to turn negative. So once again, we watch and a stay guarded for a retreat to safety.
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