Learning from last Week: (click here for the previous post)
- Index after a couple of Dojis, crashes to support #W1.
- The combination of the Big 'W' and the new Day Channel #D1, make a neat 'Cup and handle' pattern.
Support & Resistance:
- Index again took support at the Channel bottom of the Day Chart #D1 - it failed to make upward progress from previous week's Doji's close #D1.
- The 5 EMA and 13 SMA, on the Weekly Screen poised to cross bearishly or deflect Bullishly #W1.
- RSI 13, hesitates and falls at the oversold mark #W2.
Bears keep the index below the Week Channel bottom (orange) once again #W1.Desperate Bulls produce the 'Handle' of the 'Cup and Handle' pattern with the Day Channel action #W1.
Looking forward into this Week:
- Day Channel bottom (pink) #D1 is support. Index Resistance is the Week Channel's Bottom line (orange) #W1,
- Death Cross on the EOD, is active as long as the 50 SMA and the 200 SMA stay crossed Bearishly (Study Links here, here or elsewhere) #D1,
- STS touches the over bought line #D2.
Bulls hope for rewards from the big 'W' pattern #D1, with a breakout from the ATH #M1.
Stoic Bears use the resistance at the Week Channel bottom (orange) #W1 to send the index down #D1 potentially forming a 'Cup and Handle Pattern'.