cracking the ceiling, page-48

Hi Folks,

Yesterday, NCM broke upwards out of a downward sloping channel its been in since late February. This is a bullish event.

On a ratio chart NCM:Gold(AUD) (NCM to Gold in Australian Dollars), NCM broke upwards out of a shallow inverse head and shoulders formation; i.e., NCM is becoming a little more expensive compared to Gold in AUD. This may be a bullish event if, as often occurs, gold stocks lead the price of gold upwards.

Gold in Australian Dollars is still locked in a downward sloping (bullish wedge). Although such formations normally break upwards, until the break occurs, a little caution should be exercised.

Today on the one-hour chart, NCM is still showing its bullish trend being well above the 10-period and the 20-period Simple Moving Averages. It has, however, stopped running up the upper Bollinger band; i.e., the share price is now well inside the upper Bollinger Band suggesting some loss of momentum.

The RSI (Relative Strength Index) has once again hit above the 80 mark. This suggests that market action today in CDU has probably reached a peak and sideways action will occur for most of today.

To continue with the bullish theme, the ADX on the one-hour chart is now above the DMI+ which is well above the DMI-. This indicates a very strong short-term trend.

On the 15-Min Chart, there are negative divergences on the MACD and the SRI. These negative divergences don't necessarily mean a trend change, but do support the contention that sideways action will be the order for the rest of today.

Of course, all those short term directions can change in the blink of an eye. One needs to keep one's eye on the ball at all times.

Cheers
Red