AI
Friday, May 20, 2016 9:23:05 PM
From DECISION POINT = H and S or BULLISH FLAG ?
Conclusion: As I noted in today's webinar, I am neutral for the short and intermediate terms. There are conflicting signals and patterns in both time frames. Long term is bearish given current monthly PMO SELL signals and prices inability to break above overhead resistance at all-time highs.
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As I noted yesterday, the head and shoulders pattern had technically not executed because price didn't close below the neckline, keeping viable. Today's rally did pop cleanly above the neckline, but as the 10-minute bar chart displays above, the declining trend and right shoulder are intact. Carl mentioned to me the possibility of a bull flag formation in the intermediate term. I've used highlights to show the formation. He and I both agree that it won't likely complete, but it does put a bullish spin on market activity and that shouldn't be ignored. The PMO is making an attempt to decelerate and bottom, but it hasn't yet.
Conclusion: As I noted in today's webinar, I am neutral for the short and intermediate terms. There are conflicting signals and patterns in both time frames. Long term is bearish given current monthly PMO SELL signals and prices inability to break above overhead resistance at all-time highs.
.................................................................
As I noted yesterday, the head and shoulders pattern had technically not executed because price didn't close below the neckline, keeping viable. Today's rally did pop cleanly above the neckline, but as the 10-minute bar chart displays above, the declining trend and right shoulder are intact. Carl mentioned to me the possibility of a bull flag formation in the intermediate term. I've used highlights to show the formation. He and I both agree that it won't likely complete, but it does put a bullish spin on market activity and that shouldn't be ignored. The PMO is making an attempt to decelerate and bottom, but it hasn't yet.
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