"absolutely fabulous friday", page-2

From Ze Blog

Hourly trend analysis cont'd

Some further upside gained last night and price is now around an area where suspected resistance resides.

The chart:

"as suspected" from previous post, further rises in the index ensued on the hourly and buying the dips proved profitable, though nowhere near as glamorous as those gleaned from yesterday/previous night.

Equal measure targets have almost been met and noise could well account for the one or two points difference in the measured moves (marked by Red vertical line segments..Leftmos height of first wave up, then added to bottom of second wave down)

I am interested to note that Momentum indications via the Hourly MACD, which signalled the beginning of this trend from the opposite side, are now signalling the potential that this trend is weakening and may indeed turn as it approaches the targetted equal measure moves.
Stochastics are also picking up some divergence on this timespan.
On the positive side, and towards the potential of trend continuation, the thick horizontal line highlights recent support resistance, broken through, tested and held as support... I beleive this should now act as a handy line in the sand and a break down through this new support level could indicate resumption of weekly downtrend.

At this stage I have closed out my longs and am happy to see what unfolds before I go to grab a position again.

My inclination is to look for a short entry, seeing how the momentum indicators as price approaches targetteed levels are suggesting trend completeion, but on this timespan I would like to see more of a topping pattern occur to give me confidence in potential downside... three distinct peaks... a small three wave up from current levels quickly retrace... something like tht, or perhaps a break and hold below of the 21 period moving average to the downside.
My thoughts are still very much inclined to thinking that the WEEKLY downside is not yet done, though close to it.

If'n I am wrong I am sure the opportunity to jump on the trend up will arise.

;)