12.3.17 | WFC | Day | Andrew AponasJournal Entry: I think I may see a possible retracement from the bullish wave. A double bottom or Big W had just completed it's formation and price is now testing a supply zone which may follow up with a slight response bearish consolidating just below the zone in a downward motion. I expect price to stay pivot at support which is overlapping the 50% line. Both days traded on above average volume signaling that this may be stopping volume or the insiders are keeping the market propped up at this level prepared to move it higher. Based on both indicators I am using they are tracking bearish divergence on the upward moving channel price is trading in and has been trading in for the past few months. Thank You, God Bless.
Indicators:
RSI is tracking bearish divergence in a downward moving channel I have drawn in a pivot point right below the RSI line and expect a pivot here if price is going to go long. I also drew a trendline for a breakpoint signal in the event that price continues bearish.
OBV is also tracking bearish divergence with a possible triangle overlapping the downward moving channel. This may begin to signal a breakout as price squeezes out if the triangle pattern is proven to be true. I also have the 50EMA overlapping this indicator and the OBV is confirming to be in a period of consolidation right now as the OBV line is moving through/in the 50EMA. I am noting the OBV will be displayed in it's own picture below.
