S&P 500 index chart pattern
It took almost 6 months but bulls finally managed to fill the downward 'gap' formed on Jan 30 on the daily bar chart pattern of S&P 500. By touching an intra-day high of 2848 and closing 2 points lower on Jul 25, the 'gap' between 2838 and 2851 (refer last week's post) was almost completely filled.
Bears expectedly put up a fight to defend the 'gap'. The index dropped and closed below the 'gap' on Jul 26. That was a trigger for bears to go on the offensive. On Fri. Jul 27, the index dropped sharply below 2820 before recovering to close at 2819.
Daily technical indicators are showing downward momentum in bullish zones. MACD has started to fall towards its rising signal line. RSI is falling after facing resistance from the edge of its overbought zone. Slow stochastic has dropped sharply from its overbought zone.
The index is trading above its three EMAs in a bull market. However, some more correction or consolidation is likely before the index can move up to a new high.
On longer term weekly chart (not shown), the index closed above its three rising weekly EMAs in a long-term bull market. Weekly MACD and RSI are rising in bullish zones. Slow stochastic is showing negative divergence by starting to correct inside its overbought zone.
FTSE 100 index chart pattern
The daily bar chart pattern of FTSE 100 touched a lifetime high of 7903.50 on May 22 '18. Since then, it has been consolidating sideways, and may be forming a 'saucer' or a 'cup and handle' pattern. Both are bullish continuation patterns.
Daily technical indicators are giving mixed signals, which is often the case during periods of sideways consolidation. MACD is moving sideways with slight upward bias, and is above its signal line in bullish zone. RSI is moving sideways just above its neutral zone. Slow stochastic is oscillating below its overbought zone.
Expect the consolidation to continue till the index can move above the 7800 level. (At the time of writing this post, the index is trading above 7680.)
On longer term weekly chart (not shown), the index closed above its three rising weekly EMAs in a long-term bull market. Weekly technical indicators are in bullish zones but giving conflicting signals. MACD is moving sideways. RSI is rising gradually. Slow stochastic is sliding down.
It took almost 6 months but bulls finally managed to fill the downward 'gap' formed on Jan 30 on the daily bar chart pattern of S&P 500. By touching an intra-day high of 2848 and closing 2 points lower on Jul 25, the 'gap' between 2838 and 2851 (refer last week's post) was almost completely filled.
Bears expectedly put up a fight to defend the 'gap'. The index dropped and closed below the 'gap' on Jul 26. That was a trigger for bears to go on the offensive. On Fri. Jul 27, the index dropped sharply below 2820 before recovering to close at 2819.
Daily technical indicators are showing downward momentum in bullish zones. MACD has started to fall towards its rising signal line. RSI is falling after facing resistance from the edge of its overbought zone. Slow stochastic has dropped sharply from its overbought zone.
The index is trading above its three EMAs in a bull market. However, some more correction or consolidation is likely before the index can move up to a new high.
On longer term weekly chart (not shown), the index closed above its three rising weekly EMAs in a long-term bull market. Weekly MACD and RSI are rising in bullish zones. Slow stochastic is showing negative divergence by starting to correct inside its overbought zone.
FTSE 100 index chart pattern
The daily bar chart pattern of FTSE 100 touched a lifetime high of 7903.50 on May 22 '18. Since then, it has been consolidating sideways, and may be forming a 'saucer' or a 'cup and handle' pattern. Both are bullish continuation patterns.
Daily technical indicators are giving mixed signals, which is often the case during periods of sideways consolidation. MACD is moving sideways with slight upward bias, and is above its signal line in bullish zone. RSI is moving sideways just above its neutral zone. Slow stochastic is oscillating below its overbought zone.
Expect the consolidation to continue till the index can move above the 7800 level. (At the time of writing this post, the index is trading above 7680.)
On longer term weekly chart (not shown), the index closed above its three rising weekly EMAs in a long-term bull market. Weekly technical indicators are in bullish zones but giving conflicting signals. MACD is moving sideways. RSI is rising gradually. Slow stochastic is sliding down.
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Correction Worse Than February Is Looming, Morgan Stanley Says
https://www.bloombergquint.com/markets/2018/07/30/correction-worse-than-february-is-building-morgan-stanley-says
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