Yesterday's fast moves fit very well on price scale as a 5w Impulse from 5548 upwards:
but on time scale,particularly for sw4=5927-5839, I got perplexed.
New highs in closing hour were not supported by new highs on RSI & MACD thereby causing negative divergence.
I would advise focussing on following channel for future trades:
Shorts to be created only on LTL breach.
Andrews Pitchforks(5 min charts) show that we are sitting on a trigger line and if we trade higher than yesterday's high for first one hour,we may continue to move upwards to 6060+ levels
If the red triggerline on the above chart gets breached then Hour charts' pitchfork would come into focus:
The ascending blue median line in above chart is currently at 6040.
It wouldnot be out of context to mention my friend Sanjay Bhatia's square theory (Gann's ???) which says above 75x75=5625 meant 76x76=5776 then 77x77=5929 and a close above it would mean we are gunning for 78x78=6084
EOD Post:
Although the channel was not breached but a close below 13 Hr EMA,negative divergence and bearish MACD 5,34,5 cross in Hour charts tilt the balance in favour of bears.
Following chart is a close up of immediate supports:
A close below 5838 would mean we would test the median in following chart to complete the sine curve wrt to following median:
New highs in closing hour were not supported by new highs on RSI & MACD thereby causing negative divergence.
I would advise focussing on following channel for future trades:
Andrews Pitchforks(5 min charts) show that we are sitting on a trigger line and if we trade higher than yesterday's high for first one hour,we may continue to move upwards to 6060+ levels
It wouldnot be out of context to mention my friend Sanjay Bhatia's square theory (Gann's ???) which says above 75x75=5625 meant 76x76=5776 then 77x77=5929 and a close above it would mean we are gunning for 78x78=6084
EOD Post:
Following chart is a close up of immediate supports:
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