Retail daily chart takes a closer look at the short term action. Note the blue lines show price trying to make new highs but the indicators show negative divergence for the moves, spanking it down each time. The exception is the green lines for the MACD line that wants to see a matching price high occur again. Note the red lines and circles. Price made a low during the August waterfall crash and the indicators fully supported this low print and in fact, the circles show that a test of this low is desired. In early October, the best price could do is come down to 99, that is not much of a test of the 94-ish low, so the door remains wide open for price to come back down to this area again.
Money flow and stochastics are below 50% which favors bears; watch to see if the RSI loses the 50% level which will be a sign of trouble for the retail sector. Projection is for some price buoyancy in the near term to satisfy the MACD line (green lines) and create an M Top. The forecast forward is lower prices targeting the 94-99 area. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.
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