overbought, MACD closing up, correction soon, however strong momentum, increasing confidence in the economy and the fed will still provide support to the rally.
Dow broke the previous retracement with much ease, but it's been hanging around the 14,000 level, and since it is so close to its all time high 14164.53, is it gathering momentum to break it or is it sucking more money to fall?
expect a short term correction tomorrow as obama and the house wrapping up the sequestration drama. It won't be a pretty picture,...
Sell stops kicked off and aggravated the drop today. That said, although there are macro pressures (economy back on track, gains in the dollar, fund managers reducing gold-related shares etc. etc.), technical selling accounts for the majority of the decline today.
And:
Chinese traders come in Monday and restock to take advantage of the drop
RSI dips below 30...
prices are trending down the linear regression channel and current price is relative close to the upper bond which is likely to force the price down. also recurring pennants pattern indicate consolidation and previous trend usually continues.
stop: 490
target: 440
risk:reward 3:8
- bullish investors who came in late for the up rallies are trapped in the drop after druggy's talk
- a short term rebound is likely for them to recover looses
- ECB will have to make the currency cheaper to stimulate economy
Enter at 1.3350 when the price breaks out of the lower uptrend line
or at 1.3520 when the price rallies up again near its last high...
