I know everyone seems to be talking about the rally gaining momentum, however from what i can see is a H&S forming clearly on the 1 hour chart. Also the RSI on 9 September barely moved and turned down slightly to close the day. Also (not shown on this chart), but the fib retracement from the August top has reached 38.2%, which is could possibly be wave 4...
So as you can see from the chart, the last time we were this far above the 200MA was March last year (27%). Before that it was 2008 (~50%). Today we are now around 40% away from the 200MA. We are at the top of the trend, under Resistance R3 on the daily, Stochastic doesnt have any more room to go up (computer will probably say no at some point), BB is...
Maybe someone can help me out here, but the double top we had prior to Covid in March 2020 seems eerily similar to the chart pattern currently forming on XJO. This would indicate a major pullback if it was the case.
If you are looking to buy the dip from last week's sell off, the chart seems to tell a different story. From what i can see, even though the market has come back up since last week, all it has been doing is testing the 50% fib retracement from last week's high.... It also can't go higher than the midpoint trend line. My guess is that it's prepping for another...
Looks like the retracement to 50% fib is complete and attempts to get past it today failed. Could be signal for a slight correction - not sure about it going to 200MA in the short term but at least to just under 50MA resistance based on previous trend
