The weekly chart is unenthusiastic about the matching record highs in price. The red lines show the negative divergence in play. Volume is high over the last couple weeks. Much of the stock rally was short-covering since everyone and his bro had short positions on going into the election on 11/8/16 and the sentiment was overwhelmingly bearish and negative. Once the rally began, it actually started on Monday, 11/7/16, the shorts were running for their lives buying to cover creating upside rocket fuel.
The upper band was violated in the summer time so price went to the middle band, and then the lower band where the bounce occurred back up to the middle band. Price now teases at new record highs. Use the 20-week MA at 2156 as a gauge to see if the bulls or bears are winning. At 2182, the bulls are clearly winning.
The move higher in price has momentum and momo can take you a bit farther than warranted. Overall, however, on this weekly basis, the expectation would be for sideways prices ahead rather than a big-time breakout. It will be interesting to see if new highs can print in the week ahead. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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