One of my pal’s from back east just crafted this chart:
Chart shows 2 Bullish patterns:
- Inverse Head and Shoulders
- Cup and Handle
Both may have finished a short term run because of:
- Bearish Divergence in volume
- On Balance Volume (Institutional buying/selling) is beginning to turn
- Price is at the upper Bol Band…normally, price action after hitting or piercing the upper band tends to revert to the mean and come back into the bands…towards the 20 SMA
- Most recent candle is showing a “Doji” (almost). A Doji indicates indecision and at the top of a price movement can potentially indicate a reversal is coming up.
- Net/Net…watch this like a hawk!