The Bonddad Blog
Still nerdy after all these years
Tuesday, March 2, 2010
The main point of the above chart is to illustrate that prices are currently at the 50% Fibonacci level and are finding a tremendous amount of upside resistance at that level.
A.) Despite the gap higher (a positive technical development), prices have formed some incredibly weak candles, indicating the upward momentum isn't as strong as the gap indicates.
B.) Note the EMA picture: they are essentially in the same place they were several weeks ago. In other words, nothing has really changed.
Take a close look at the last ~month of price action: nothing has happened.