finicky friday

m'kay,

Further to my last post on the range exhibited on the Daily for the SPI.

Here's the Daily SPI chart as of this morning.

As can be seen, overnight action took price right up to the top of the marked range, and at this stage we have apparent rejection of this level.

Also note that as marked on the stochastics we have what appears to be the begginning of a short signal, if the last 7 occurrences of this phenomenon are to be taken into account.

Coupled with this, there is the bracketed histogram on the MACDs as marked by the leftmost blue arrow on this indicator, where the histogram bar following the bracketed bar is of lesser magnitude, n if one was to have faith in this winkinatcha signal would suggest that price COULD get at least as low as the low of the candle relevant to the bracketed bar, IE back to around 4520.  I am "hoping" that price will actually travel all the way back to the bottom of the range n possibly further to satisfy the DOWNSIDE area of 4100-3650 as mentioned in the last post concerning the WEEKLY chart of the spi.  Hope don't get you dollars tho.

Needless to say, I am short at 4630, and a bit before, being the excited pre-emptive chap I sometimes can be.

cautionary stuff regarding the efficacy of this longer term short trade idea...
price is just coming down, intraday, to the top of a recent little range, and current breakout area... if the breakout upwards from that area is going to be "real breakout", then standard breakout kinda action allows for price to breakout, retest the level of the breakout n then continue in the direction of the breakout.

we're testing the breakout level now, n there is nothing to stop price from rebounding, breaking top of the range n continuing upwards.

The stochastic signal is not really fully formed til the signal line is back below and holding below the overbought area, and these oscillators can "hang" in the overbought area for some time.

Time will tell no doubt.

Safe trading all

;)