Monday, April 5, 2010
Let's start with a view I don't often use -- a simple line chart. Notice that prices have broken through resistance at B but have also broken upward sloping trend line A. Prices are currently in an upward sloping pennant pattern.
A.) Notice that last week all the bars were weak -- all the bodies were small with fairly long wicks. In addition volume was weak (B).
Notice that prices could not keep their upward momentum on any day last week. That tells us traders were extremely concerned about something.
A.) The EMA picture is still great -- the shorter EMAs are above the longer EMAs, all the EMAs are moving higher and prices are above all the EMAs. But
B.) The MACD has given a sell-signal and
C.) We're seeing the A/D line stagnate.