The odds favour an upwards break in the next couple of days.The past two days have both been down - on lighter than average volume for the past ten days.
The past two candles have both been reversal candles - Monday was a tombstone, today was a hammer.
Looking at the bottom chart:
- Strong divergences appear on the Daily RSI(14) and Daily MACD Histogram.
- A weaker divergence appears on the Williams %R.
- The chart has formed a bullish downward sloping wedge.
Looking at the top chart:
- The Daily RSI(2) has formed a strong divergence from price. (This chart hasn't been updated from yesterday. I'm sure that today's data would increase this divergence. Stock Charts don't update their Aussie chart until many hours after the close.) This is a very short term trading indicator - but suggests the market will break upwards not downwards - such a break would have longer term implications.
Cheers
Red
Cheers
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