20 May 2016 - Don't Fixate Too Much On Patterns

It's a given that patterns appear everyday for a technical traders life.  But it does not always pans out.  The same could be said for signals and sentiments, but as always it's in the strategy that we use that makes these analysis successful.

Daily has formed a positive divergence and confirmed today with the ST turning UP.  This is what I was watching for and did not see an extended OS condition which could have pushed price lower.  Instead by morning the intra-day signal along with price shot up and continued its bullish day.  There was a negative divergence it the futures market which resulted only in a small pull back.  This was not enough to change the sentiment by end of day.

This risk right now is for more upside due to the ST changing direction and the intra-day signals floating in OB levels.  

SEN: Bullish (Down-Trending May 5th)

ST: UP

PA: UP

R: NA (Looking for Upside entry opportunity)