Daily 13 Jan
Positives
MACD is above its sig line & rising
Negatives
Stoch 5 is below its sig line, has cossed out of the overbought area & made a lower peak (Divergence) from the sp as that made a new high.
Stoch 14 is in the O/B area, below its sig line & made a lower peak (divergence)
Histogram is trending lower.
MACD is narrowing
Outlook.
Overall, the daily is looking great but momentum has stalled.
In the s/t the indicators showing some weakness & are overbought.
The 5 day rising flag is imo bearish looking.
My daily models show downside alerts so some downside is expected.
Frid high was almost at the top of the projected range & met up with some prev resistance at some converging trend projections.
Continued involvement by the Pros. seems the likely reason for the fade.
The data clearly shows little if any selling by L/T holders & traders can just suck it up if they trading for pips & having to sell.
It looks likely that a retrace is coming but not a certainty given how advanced the project is & production starting to gather steam.
If we get a normal 50 – 62% retrace, then a dip down to 57 – 60 is on the cards. A great opportunity if that happens.
Resistance is 65 – 71 but breaking through there & 85 is just a short hop.
The spring will snap if its wound any tighter.
Weekly
Positives
Stoch 14 has crossed back into the bullish zone above 50
MACD is at / crossing the sig line
Histogram has crossed above zero
Negatives
Bearish candle
Outlook
Last wks high reached the top end of the range before being pushed down to form the bearish candle.
The trend is up & strong but we will have swings.
Vol increased last week but overall the net vol was selling (-2,901,326).
Shorts were very active on Tue & Wed & overall reported short vol to Thu was 4,435,011.
So shorts were responsible for 98% of that net sell vol.
There were 11,911,406 open positions as at the 9 Jan & the avg Loaned / Borrowed stock was unchanged at 23.3 million.
My wkly models show multi upside alerts so I expect to see a higher high than the last close at the very least.
That may come on Mon but it looks likely that we will see a swing lower on the next bar.
Nothing to worry about & a golden opportunity for those able to take advantage.
Support is 63 – 635 then down around 57 – 59
Resistance is 69. A break above & 85 – 88 is a likely target.
