Evening all, well obviously a ripper of a day for MAY. Pleased...

Evening all, well obviously a ripper of a day for MAY.  Pleased to see that the SP did not pull too far away from the either the 8 day EMA (trigger) or 20 SMA, also still tracking in the ascending price channel.  In my view and experience, for a slow steady increase in price it is best that the SP & 8 day EMA and 20 SMA all track relatively closely, at least on the daily chart.  The only time that this does not hold true (in the short term) is when a breakaway gap occurs, which was unlikely to eventuate, given the widely telegraphed likely result.

I have attached a chart below, without the ‘distraction’ of SP data, showing the current relationship between the (to me significant) moving averages.  The 8 day EMA is just a whisker below the 20 day SMA.  So unless manipulative bots are unleashed tomorrow I would anticipate seeing this  situation reversed tomorrow.  Which should set us up for nice steady SP appreciation. If it doesn’t occur the bad guys have won the day.  In short 8 EMA above 20 SMA, below bad. (or at least less than ideal.

MA RELATIONSHIPS

I have attached a chart showing the FIB retractions and extensions (closing price) showing likely support/resistance.  As with yesterdays post, no crystal ball, tomorrow’s price action will determine where we land and more importantly where S/R lies.  As it currently stand O/H resistance is currently .19.  Should this break (and hold) will obviously become support. With next S/R point around .23.  From there on in I would anticipate consolidation within the above mentioned range

As long as we are heading north all is good for me.  As with all my posts this is merely an opinion, not advice,  that you can take what you want from (if anything)

GLTAH
Charlie