“Those who have knowledge don’t predict. Those who predict don’t have knowledge.” Lao Tzu, Chinese philosopher, 6th century BC

PAYPAL

Tuesday 21 October 2014

21 Oct 2014 - Slice And Dice

On the way down prices sliced through the 200 day Moving Average, dicing all the bulls that thought it would hold as a strong support.  This time around, prices sliced up through the 200 day MA. and the Bears this time got diced who thought it would hold as a major resistance.  The ST again was the clear winner here, and I for one didn't think prices would get this high.  At least not without a corrective test of the lows first.  So now the question is if this level of 1940 will cause a turn down for prices or do we just keep chugging up for the 1952 level where the 75 ma of the 60min chart resides.  Often than not, this MA has been a good stopping point. 

If prices hold at this level,  and by looking at the Fib. level of 1943.37 as resistance.  We can call the run down from the Sept 19 high to the Oct 15th low as a complete pattern.  The Market Sentiment on the side of the blog is still showing a bearish market.  Therefore even if the price accelerate to higher highs we could just be putting in a final top.

MT: DOWN
ST: UP
PA: NA

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