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

PAYPAL

Friday 8 January 2016

8 Jan 2016 - Risk Reward

"..I would look for a rally as early as tomorrows open at the least.  We can confirm this through the intra-day chart again.  If the signal fails to come out of the OS condition and eliminates the positive divergence, then expect that a lower low is highly possible.  The last time my Sentiment signal was this bearish was back in Aug. 2015, so I would not be surprised if we get a surprised fall.  Not to say it would happen, but just an increased risk for one.

If you are on the right side of "Risk" then there will be a greater chance of a "reward".  Yesterdays divergence believe it or not is still active even with the drop we had today.  But this also kept us OS all day and as it goes, prices will not stay rational at this range.  A rally will occur when the intra-day signals push above OS, so watch for this next week.  I'm keeping this short because it is as simple as that.  At OS anything is possible... Even a "Crash"

Oh and BTW...  Weekly bar and signals do not look good with 4 out of 5 days in the red.

SEN: Bearish
ST: DOWN
PA: DOWN




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