friday, page-86

Greetings fellow traders, I come with good news (or something, lol)

On Thursday night, for a bit of a cack, I posted a Dow Jones chart with Daily bars.... and gave my analysis ... I've added a couple of comments since...

Winks Daily Analysis of DOWJONES, based on IGMarkets chart

Firstly.. Thursday night's chart...



The two lines I have on the macd show what I call double divergence, or simultaneous divergence...of the histo and MAVs. This is an impending turn signal of the ilk of the Whooshka, but not necessarily as strong.

This signal, and the parallel price action, suggests to me that we have put in a turn, and that an upside trend is in place.

Couple of points to note...

Beneath the current bar we have a coming together of both the 13ma and 20ma in a bullish configuration.. aint truly bullish til it crosses, but it aint far off.

Price is also completely above the 21ma, a positive sign for upside.

If this were one of my standard 5 min charts and I was watching this, I would be aware that price may come down to test the 21MA again (red solid line) before more upside (it also may not and friday's action suggests to me this is less likely)

The large green bar of the 28th gives me an indication of a reasonable scalp target, from the 21 MA up. that bar has a range of roughly 1000 points, which gives me a short term target (within the next few bars) of around 10,000. (from low of 29th, plus 1000 points)

The dotted red line, the 200MA is pretty magnetic and if we have upside, I would have this as a longer term target (a few bars or days) (Big ups to SabreToothed for pointing out the 200ma to me some time ago)

Potential action...

If the 21ma is tested again it will be a pain and would require re-assesment, though I would consider that a fairly high probability long entry, should it occur. With a test already occuring on the 28th, it is conceivable that upside price action in the short term is the go...

Some recent Histogram analysis:

The latest peak has a far higher MACD histo than than the previous peack around the 12th... I think this is a sign of CONVERGENCE, but I am yet to study that side of the MACD in full.

Unfortunately, IGMarkets charting package blew up last night and so last night's price action is not shown well on the current bar.



The current histogram bars are still rising... I see this as a sign that more upside is still to come.

;)