S&P 500 index chart pattern
After touching a lifetime high of 2695 on Mon. Dec 18, the daily bar chart pattern of S&P 500 appears to be consolidating within a bullish 'flag' pattern from which the likely break out is upwards.
Daily technical indicators have corrected overbought conditions. MACD has crossed below its signal line and is about to drop from its overbought zone. RSI and Slow stochastic have fallen sharply from their respective overbought zones. Some more consolidation within the 'flag' is a possibility.
Can the index fall below the 'flag'? The possibility can't be ruled out. Since the index is trading above its three rising EMAs in a bull market, an upward breakout from the 'flag' is the most logical outcome.
On longer term weekly chart (not shown), the index closed well above its three rising weekly EMAs in a long-term bull market. Weekly technical indicators are inside their overbought zones, but showing some signs of correcting.
FTSE 100 index chart pattern
In a three day trading week truncated by Christmas holidays, the daily bar chart pattern of FTSE 100 rose to touch new intra-day (7698) and closing (7688) highs.
All three EMAs are rising, and the index is trading well above them in a bull market. Daily technical indicators are looking overbought.
A pullback towards the 'resistance' line connecting the Jun '17 and Nov '17 tops is a possibility. A 'buy the dip' strategy can be followed.
On longer term weekly chart (not shown), the index touched a new 3 year high and closed above its three rising weekly EMAs in a long-term bull market. Weekly technical indicators are in bullish zones but showing negative divergences by failing to touch new highs with the index.
After touching a lifetime high of 2695 on Mon. Dec 18, the daily bar chart pattern of S&P 500 appears to be consolidating within a bullish 'flag' pattern from which the likely break out is upwards.
Daily technical indicators have corrected overbought conditions. MACD has crossed below its signal line and is about to drop from its overbought zone. RSI and Slow stochastic have fallen sharply from their respective overbought zones. Some more consolidation within the 'flag' is a possibility.
Can the index fall below the 'flag'? The possibility can't be ruled out. Since the index is trading above its three rising EMAs in a bull market, an upward breakout from the 'flag' is the most logical outcome.
On longer term weekly chart (not shown), the index closed well above its three rising weekly EMAs in a long-term bull market. Weekly technical indicators are inside their overbought zones, but showing some signs of correcting.
FTSE 100 index chart pattern
In a three day trading week truncated by Christmas holidays, the daily bar chart pattern of FTSE 100 rose to touch new intra-day (7698) and closing (7688) highs.
All three EMAs are rising, and the index is trading well above them in a bull market. Daily technical indicators are looking overbought.
A pullback towards the 'resistance' line connecting the Jun '17 and Nov '17 tops is a possibility. A 'buy the dip' strategy can be followed.
On longer term weekly chart (not shown), the index touched a new 3 year high and closed above its three rising weekly EMAs in a long-term bull market. Weekly technical indicators are in bullish zones but showing negative divergences by failing to touch new highs with the index.
No comments:
Post a Comment