Buy1Sell2
Registered: Jan 2006
Posts: 8117 |
05-15-06 10:01 AM
Quote from Buy1Sell2:
There is a lot of indecision at this level in the market and I am certain it is because 1.30 looms. Bulls just want to keep buying the dips here. I think the next hour or two could be critical to the bears case. My opinion is that we will see a downward move at some point, but I am not sure it is right now. The RSI now is attempting to cross above the OB line again. If it would fail to do that, I would see that as an opportunity to sell. Many times when a market has been moving up strongly like this one, it needs not only to have the Histogram divergence on hourlies, but also an RSI failure swing before the real down move occurs. Also, a third lower Histogram peak coinciding with RSI failure swing would be very strong. Absent those items, we may need higher price to get selling into the market. Mind you, this is only hourly chart analysis--not daily or weekly. As always when trading hourly charts, I would recommend at least a 100 pip stop loss.
Bingo
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