Wednesday, September 29, 2010 6:48:01 AM
Re: QID - A "QID" Pro Quo Reversal, Or Is It For Good?
The QID is hitting the bottom border of its bearish channel. While it is clear in the chart that the bearish channel has played a great magnet strength than the bullish channel, this chart is showing several indicators that are nearing a reversal point.
First, the QID itself has been tip-toeing at the bottom of its bearish chanel, as just indicated above, and its next step looks like it wants to repeat that same gait pattern which have preceded range-bound rallies.
Second, the CCI, Wm%R and CMF have formed discreet divergences that reinforce the technical hint of an imminent rally - The strenght of which remains to be determined.
Third, the PPO signal line - itself in a positive divergence - is signaling a high probability of a rally as it nearly crosses over its signal line.
Finally, in fourth point, comes the ADX which has waned to signal that the negative strength that had been in force over the recent decline has now lost steam.
On the buying/selling front, the A/D and OBV lines are non-commital features in terms of early indication of a rally, but the ChiOsc line, has made the first stride by overcoming its predominent 21-EMA down-trending line.
OVERALL - While the QID has fallen through the soft ground of its prior bullish channel, and now seems magnetized to the confines of the bearish channel, the likely rally to which I have alluded will not trump the predominent bearish feature of the chart. Because this is a shorting tool, the QID points to an overall predominantly bullish market. Therefore, it would take some unusual fundamental deterioration for this chart to pierce above the upper border of its bearish channel, meaning that until a devastating news happen to the market, it remains a safe bet to target entries and exits based on the borders of the bearish channel.
Now, watch for that daily 9-EMA ...
Happy trading.
- Dalcindo
QID - 12-Month, DAILY Chart:
The QID is hitting the bottom border of its bearish channel. While it is clear in the chart that the bearish channel has played a great magnet strength than the bullish channel, this chart is showing several indicators that are nearing a reversal point.
First, the QID itself has been tip-toeing at the bottom of its bearish chanel, as just indicated above, and its next step looks like it wants to repeat that same gait pattern which have preceded range-bound rallies.
Second, the CCI, Wm%R and CMF have formed discreet divergences that reinforce the technical hint of an imminent rally - The strenght of which remains to be determined.
Third, the PPO signal line - itself in a positive divergence - is signaling a high probability of a rally as it nearly crosses over its signal line.
Finally, in fourth point, comes the ADX which has waned to signal that the negative strength that had been in force over the recent decline has now lost steam.
On the buying/selling front, the A/D and OBV lines are non-commital features in terms of early indication of a rally, but the ChiOsc line, has made the first stride by overcoming its predominent 21-EMA down-trending line.
OVERALL - While the QID has fallen through the soft ground of its prior bullish channel, and now seems magnetized to the confines of the bearish channel, the likely rally to which I have alluded will not trump the predominent bearish feature of the chart. Because this is a shorting tool, the QID points to an overall predominantly bullish market. Therefore, it would take some unusual fundamental deterioration for this chart to pierce above the upper border of its bearish channel, meaning that until a devastating news happen to the market, it remains a safe bet to target entries and exits based on the borders of the bearish channel.
Now, watch for that daily 9-EMA ...
Happy trading.
- Dalcindo
QID - 12-Month, DAILY Chart:
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