Intraday:
We started the day off with a little bit of the sell the rally crowd coming in at the open. We then got a terrible consumer confidence number which pushed us to the lows of the day. After that we began something of a whip saw day as we meandered higher before running into overhead resistance from nearly a year ago at the 1220 level. Ultimately we set up a bearish rising wedge by the end of the day.
Daily:
On a daily time frame we ended setting up a potential reversal candle in the form of a doji. This particular doji does have a bullish connotation considering that we closed slightly up in the upper half of the trading range. This is getting very tricky, considering we have a potential reversal pattern with the majority of our indicators flashing bullish. The one thing we haven’t seen yet is the 10 day crossing above the 20 day moving average.
This could end up being a continuation making my double bottom play out. The bear pennant failed to play out as we closed above the previous peak. Although the double bottom has some potential, I think it is more likely that we will continue setting up this rather large bear flag. Before breaking down for a move through the 1100 level. We will likely pull back to the gap from yesterday as a sub-wave 4 of my projected wave 2. After that we can expect to rally back to the upper trend line of the flag pattern to finish off a sub-wave 5 marking the beginning of my wave 3 down.
No comments:
Post a Comment