Today's action was, once again, inconclusive. A flat day with the market (XAO) up just +0.2%. Today and yesterday, the chart candles were "dojis", with the opening and closing price about even. That's typical of an indecisive market.Looking at the indicators, I see the following:
- the MACD is below its signal line about well above the zero line. That's an indication of temporary weakness. Until the MACD crosses below the Zero line, the bullish tone of the market remains.
- the Relative Strength Index remains above its mid-line. It's been that way since late August. Again, while the RSI remains above 50, the market maintains its bullish tone.
- the Slow Stochastic is now down in "oversold" territory. If it closes above its signal line, and above 20, a "buy" signal will be generated. While the above two indicators remain bullish, any "buy" signal should be taken.
This market may go lower, but it seems to me to be close to a short term bottom.
If a "buy" signal is generated, I'll be taking it.
Cheers
Red
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