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

PAYPAL

Wednesday, 30 March 2016

30 Mar 2016 - Monthly Clues To ATH

The markets seems to be on edge and there is a lack of trust for a bullish conviction.  Yet looking at the monthly chart, it has stayed bullish while putting in a divergence.  There us a strong sense of an ATH that could occur in the near future with the monthly closing tomorrow at OB and a bullish monthly candle bar.  While bad news after bad news comes out, the market might just be fine with it and march higher.  While the monthly chart is not so suitable for immediate direction, the ST however is a good compromise for swings regardless of short -term lags.  The fate of the monthly chart making new ATH will depend on the ST going into OS (bearish) or OB (bullish) acceleration phase.  These moves will get us further away from the ATH or closer to breaking above the ATH.

Therefore watch the ST intently.  While I feel bearish, it is always safer to stay with the indicators and its sentiments.  The intra-charts suggest a high is in along with a daily double divergence, but will have to be confirmed by the ST to turn DOWN.

SEN: Bullish
ST: UP
PA: UP


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