Hi @travelbug2 the MACD has flipped upwards last Fri...

Hi @travelbug2 the MACD has flipped upwards last Fri 05.02.2021.

SP is finally showing signs of life. Since the flash crash on 01.12.2021, SP has been trending sideways within the lilac shaded box, with a tight trading range of 14c - 16c. Since then it has broken down from the brown channel. Don't despair, by joining the 11c low point of the flash crash and 13.5c on 01.02.2021, we now have a new uptrend channel (blue lines) and it runs parallel to the brown channel EXACTLY! TA may be simply joining the dots but it would add clarity to an otherwise random collection of candles.

I am sure the pros are reading the same chart as we do. Why did it stop at 13.5c on Mon 01.02.2021? That's because the 200MA did provide a very strong support and stopped the SP from falling below. Thankfully it is now tracking slowly upwards.

My 4 favorite TA indicators:

• Thur 04.02.2021, Fast Stochastic flipped to the upside (Buy).
• Fri 05.05.2921, MACD flipped to upside but below 0 (Weak BUY).
• RSI broke above downtrend and pointing upwards, but below 50 (Weak BUY). If it breaks above 50, it would become a strong buy.
• Fri 05.02.2021 Slow Stochastic flipped upwards (BUY).
• Overall, the TAs are pointing to a BUY but on the conservative side. If the short term bottom is 13.5c, it would make a 14c or 14.5c an attractive level to accumulate for LT investors?

What to look out for next week?

• 14.5c is right on 20MA and middle of the Bollinger Band
• 15c is the middle of the blue uptrend channel, if SP could close at or above that, it would indicate positive sentiment has returned.
• The lower Bollinger Band is no longer point downwards, as soon as it bends upwards, that would be another good sign.
• The lilac shaded box is called a "Trading Range Box". If SP could break above 16c, it would have escaped the range box and we could breathe a sigh of relief.
• For as long as the SP could track above the midpoint of the blue channel (dotted line), it would soon reach the CR price of 17c. I belief the SP would meandering around while some profit taking would ensue. Only good news could propel the SP higher.

Good news on the Covid front (see chart #2)
The US cumulative number of COVID-19 cases has for the first time started flattening, now broken below the 3rd Wave trend line. I have been tracking the case number as if it is a trading stock, the MACD is showing signs of a downtrend. The vaccination appears to be kicking in and causing the infection rate to drop. It is indeed good news for the global population and the economy at large.

These are my analysis and TA thoughts, DYOR! If you would like more of these charts and analysis, please click the "Great analysis" button for encouragement.



US Cumulative Number of COVID-19 Cases - Watch out for flattening when the effect of vaccination starts to kick in