Chart Update, page-454

@Rock57 – I had to go back quite a way in the Chart thread to find my last post of 06/06. Looks like there’s been quite a bit of discussion on varied topics including:

Lots of talk about the next GFC: I wouldn’t worry about this too much at the moment. The next GFC like the last GFC will be driven by the land-credit cycle. The next GFC isn’t due until after 2026.

Some talk about trading A2M using intra-day 1 minute charts – well each to their own and good luck if it works for you. I have to agree with H00ts here.

In my last post I suggested there would be a pause in the SP rise around the 1054c level and that we would need a close above the 1100c level for the "gap closing scenario" to be in play. Well we got the pause followed by an average volume attempt of the SP to close above 1100c. This attempt occurred on a day the XJO rose significantly. We are still waiting for a close above 1100c.

I’ve tried to simplify my charts so as to high light what I consider the long term and short term patterns/indicators that investors and traders should be aware of. The first chart is a momentum chart that clearly shows that long term momentum is turning up. Although this pattern did occur back in mid-May the current momentum change would appear a lot stronger. The SP is still below the Ichi cloud, hence the Ichi sentiment is still bearish. Along with the long term support line I have added a possible resistance line to the chart. The current level of the resistance line is close to the bottom of the Ichi cloud and the top of the infamous gap (spooky-creepy or just coincidence??).


The second chart is an oscillator-cycle chart which looks at short term (about 5 day) patterns. Currently the cycle is headed down but wanting to turn up. I have another very busy chart (which I haven't uploaded) that plots indicators I use to try and identify divergences based on short period RSI and Stochastic indicators. When you identify a higher High on the SP but a lower Peak in the indicator you have a divergence. I have identified the past two stochastic divergences on the chart shown below (the green SP and red oscillator arrows), along with the potential divergence that is setting up right now. The last set of arrows will not be confirmed until the stochastic peaks and turns down from a confirmed lower level. This currently is just a warning, but if you follow these patterns and you observe the SP action that follows, this warning should not be ignored! Readers should also note that it could take another 3 to 4 days for this confirmation to occur. This shouldn't worry long term holders to much, but traders and new investors should take note.



p.s. I wish I had of taken that short term CFD trade I talked about previously, it would have closed in the black and 50% up on margin. Currently I’m still waiting for another A2M short term long setup to occur.

Good luck everyone – final thoughts: long term positive but short term be wary. DYOR