The positive divergence that was absent in 5 min charts by yesterday's EOD became an open secret as we opened with a gap-up( posting a high in RSI & MACD levels)and slid down 30 points in first 10 minutes. But it was only around 1.30 PM that a fresh low with positive divergence was "actually'made,giving a signal to go long as the Hourly was already in divergence mode.
5 min Chart
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Hour Chart:
.png)
Would have done well to close above 34 Hr EMA(5564) .But it did not do that to keep one guessing.
And another look at 5 min charts to see the probablity of a dip :
.png)
No negative divergence so far so upmove likely to continue--
How much more???
Minimum can be seen by not only the channel illustrated in Chart above but also by
SHARK:
.png)
AP Tool:
.png)
And if the opening spell (depends a lot upon global clues) sees a breach of 5603--- I would infer that an intermediate bottom has been formed and use dips to buy more for 5755+
But that leaves the gap-unfilled:
.png)
And as my friend A. Singhi asked -- (inter-alia)--what is more sacrosanct--
1. A gap which would be filled at 5448;
2. An EW Count which said 5467 should not be breached( see my post dated April 7 Week-end thoughts: Gaagar me saagar)
3.or the larger degree Shark which had pegged downmove at 5512:
.png)
My very humble opinion on that is-- NO LEVEL IS SACROSANCT--- they only represent one or more reading using Fibo/Gann and what not. Most of time,when observed in sync with momentum, one or the other of these mentioned levels succeeds. Take for example my last two days posts--- they mention 5527(start of gap),5512(Shark Fib level),5467(EW threshold) and 5448( gap filling level)-- one of these had to succeed as Daily charts were moving into oversold and Hourly was showing divergence but which one??? No body knew for certain-- and as of now,it appears that EW threshold has got respected( it would be confirmed only above 5604).
And if indeed 5604 gets breached, one should look forward to 5755+ but not above 5971 as our higher degree Count looks at the pattern as:
.png)
.png)
5 min Chart
And another look at 5 min charts to see the probablity of a dip :
How much more???
Minimum can be seen by not only the channel illustrated in Chart above but also by
SHARK:
AP Tool:
And if the opening spell (depends a lot upon global clues) sees a breach of 5603--- I would infer that an intermediate bottom has been formed and use dips to buy more for 5755+
But that leaves the gap-unfilled:
And as my friend A. Singhi asked -- (inter-alia)--what is more sacrosanct--
1. A gap which would be filled at 5448;
2. An EW Count which said 5467 should not be breached( see my post dated April 7 Week-end thoughts: Gaagar me saagar)
3.or the larger degree Shark which had pegged downmove at 5512:
My very humble opinion on that is-- NO LEVEL IS SACROSANCT--- they only represent one or more reading using Fibo/Gann and what not. Most of time,when observed in sync with momentum, one or the other of these mentioned levels succeeds. Take for example my last two days posts--- they mention 5527(start of gap),5512(Shark Fib level),5467(EW threshold) and 5448( gap filling level)-- one of these had to succeed as Daily charts were moving into oversold and Hourly was showing divergence but which one??? No body knew for certain-- and as of now,it appears that EW threshold has got respected( it would be confirmed only above 5604).
And if indeed 5604 gets breached, one should look forward to 5755+ but not above 5971 as our higher degree Count looks at the pattern as:
.png)
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