We’ve two major indicators within the brief time period (Swenlin Buying and selling Oscillators (STOs)) and two major indicators within the intermediate time period (ITBM/ITVM). Of late they’ve been diverging with the short-term STOs shifting decrease and the intermediate-term ITBM/ITVM rising. We have included the chart under so you possibly can see extra clearly what we’re speaking about.
Whereas it’s constructive to see the ITBM/ITVM rising, they’ve gotten extraordinarily overbought, notably if we’re nonetheless in a bear market (which we consider we’re). The STOs shifting decrease and sporting destructive divergences with worth leaves us much less bullish within the brief time period.
Conclusion: So what can we make of this? We consider there may be extra upside potential, however now a breakout above the June prime is important. If worth turns down right here because the STOs appear to suppose it would, the decline may very well be troublesome with the strongest help degree at $390.
Good Luck & Good Buying and selling,
Technical Evaluation is a windsock, not a crystal ball. –Carl Swenlin
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Erin Swenlin is a co-founder of the DecisionPoint.com web site alongside along with her father, Carl Swenlin. She launched the DecisionPoint every day weblog in 2009 alongside Carl and now serves as a consulting technical analyst and weblog contributor at StockCharts.com. Erin is an energetic Member of the CMT Affiliation. She holds a Grasp’s diploma in Info Useful resource Administration from the Air Pressure Institute of Expertise in addition to a Bachelor’s diploma in Arithmetic from the College of Southern California.