Freddie, Fannie, Nanny…oops sorry no Nanny, the NSG waiver all contributed towards today’s candle. No rally for us in stricter terms coz after the initial gap up opening we just hung around there for most of the day before giving up on the gains and surprisingly, even managed to close below the 2nd of September’s close! Today’s was purely a news based candle with some euphoria thrown in, sometimes candles like these tend to distort the real picture and really challenge your beliefs. In my weekend views post I had mentioned that 4550 is IT and so it WAS! Anyway days like these are used B(y)E the pros and B(u)Y the amateurs, a smart trader would have taken some money off the table(BYE BYE!) whereas an amateur in his throes of ecstasy would have done the opposite (BUY BUY!).
The hourly chart below has two identical tops now, not using the word Double Tops since a DT is confirmed if the low between them is broken, and no wonder the term DT is more often misused and misinterpreted by novices. The MACD histogram is already flashing a negative divergence, and hinting at some retracement towards 4450/4420 levels.
The Daily chart below has no new insight to offer, the 20 period MA support is at approx 4420. No clues from ADX it’s in comatose state at 13. Tomorrow any attempt by bulls will be resisted at 4500/4525/ and all important 4550, a close above 4550 would make the bears sit up and rethink their strategy.
"The worst part of success is to try to find someone who is happy for you."
Bette Midler
2 comments:
excellent!!!!
Sir again! It is not a double top, but a "strong resistance", which market can not overcome!
We were in downtrend and price rose a bit.
Pre requirement of Double Top is thattrend should be UP!
But here trend was not up that we see a topping pattern like Double Top?
Double Top also appears after "strong extended" UpTrend!
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