End of day rally was impressive, but prices still in double digit loss. The acceleration to the downside was expected especially when indicators are in OS. The one thing I noticed this morning was the positive divergence that the indicator and price was giving, but towards the afternoon all that disappeared and this should be concerning and could mean lower lows. If this does come to fruition tomorrow, we would also have a possible 5 waves down to complete the 1st structure, but only if it is shorter than the wave 3 count. In EW a wave 3 cannot be the shortest of the 3 impulsive waves. Therefore if tomorrows move is much more pronounced and long then it is possible that we are subdividing the waves. Whatever the count is, we can only use it as a guide and try to confirm it with additional sentiments or indicators.
The fact is that prices still remain below the 60 min. charts MAs. This serves to be bearish with surprises to occur to the downside. I am looking for a breach below the crash low and hopefully it will tell us of the next move to come once it happens.
SEN: Bearish
ST: DOWN
PA: DOWN
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Thanks Surya, hope you find it very informative.
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