Thanks sharpie. The RSI forms chart patterns such as a Double Top or H&S which may not show up in the stock's price pattern. Look at the 6 mo d chart, and look at the RSI 14. Looks like a possible H&S is still setting up at this time. We'll see what happens today.
A possible H&S chart pattern appears to be setting up. This is a bearish pattern. If this pattern plays out, target is 21.61; however, the 50 DMA presently located at 22.54 could keep it from reaching that level. GL
Per article I read 2 days ago. By the way, anyone see the Yahoo headlines this weekend?..... "As the stock market comes back, commodities tell a scarier story." Will commodities be the canary in the coal mine? Are they warning us
You are right....... ma's are lagging indicators If you use the 5/9 EMAs, they hug price action a little tighter. I taught myself to read Japanese cs's. They are leading indicators. I look at those first. Then the 5/9 EMA to see how it is acting.
Also be aware that if price action moves too far away from the ma's, the stock must revert to the means to allow the ma's to catch up. The stock will either move sideways or move down to meet up with the ma's.
By the way, thanks to you and cowboy for your reads. Keep it up.
Sharpie, I tried to respond an hour after you posted but was blocked.
First of all, I stated previously that the Fed has created a parabola in the markets. A parabola will always collapse. There is no exception. I suspect it may happen in May or June.
You should also pay attention to the moving averages. The bullish 13/34 EMA indicates SLW is uptrending. A bearish 13/34 EMA indicates a downtrend. I believe the gaps at 20.37 and 17.78 will fill when the 13/34 EMAs breakdown.
Technically, to fill a gap, price action of a following or future following candlestick must revert to the close of the previous day. (Sometimes, gaps are not filled the following day and may take days, weeks, months or even years to fill, but they are filled 95% of the time.) If it only reverts to the previous candlestick shadow, then it closes a void on the daily chart and some traders consider this to be a gap fill, but actually it is not. The gap remains open until at some future date, it is filled.
If you cannot locate a gap on your chart, you can go to the yahoo historical price list. For example on Feb 10, SLW closed at 23.38. The low on Feb 11 was 23.56. The difference between the two is 18 cents. Therefore, you have an 18 cent gap. Gap size matters. The market can forgive a 3 cent gap for SLW, but a 3 cent gap on a dollar stock is considered to be large.
Here is a list of the gaps:
23.38/23.56 = 18 cent gap
22.62/22.82 = 20 cent gap
20.37/20.71 = 34 cent gap
17.78/18.01 = 23 cent gap
All of these gaps will be filled at some future date.
Agree with you, Sharpie. Sold @ 24.51. SLW has some gaps to fill, but do not have time to list. Will be back this evening to post them.
There is an Inverted H&S chart pattern on the 3 mo d chart. You can see it better on a 6 mo d chart. This is a bullish pattern. Target is about 26.65.
SLW still has a bullish 13/34 EMA crossover. This is a good thing. GL
The Fed has created a parabola in the market. A parabola will always collapse. There is no exception. I agree, this will end very badly. When the market goes, it will take the world economy with it.
On Friday (1-31), the BPSPX went below 70 issuing a sell off signal. As long as it remains below 70, the markets will continue to sell off. Watch to see if the bulls can push it back above 70. For now, the bears are in control.
FB found support at the 50 DMA, but there is a good chance it will break. There is a trendline pointing to about 48.40. This will be a good support area; however, it will eventually break also. Why?........because there is a $6.24 gap at 26.51. This gap will be filled. There is no doubt about it. It will happen. It is just a matter of time.
On the 5 d intraday chart, there is an open gap at 20.36. On the 3 mo d chart, SLW has a bullish 13/34 EMA crossover. According to this crossover, SLW is now in an uptrend; however, it must remain above the 13 & 34 EMAs. If SLW falls below these EMAs, there is a strong chance the gap will fill. GL
Just read that the Fed has created a parabolic move in the stock market. The problem with this is that all parabolas always collapse. There are never any exceptions. When this one goes it's going to take the global economy with it.
This all started in 2011. If Fed had just allowed the market to correct naturally and drop down to its 4 year cycle low in 2012, we would probably now be on a a sustainable path into another secular bull market. The move up is not sustainable. The market will collapse.
Margin debt and money market funds are at levels indicating retail investors are now all in like they always are at market tops. At some point, Yellen will panic and all thoughts of tapering will vanish. They will probably increase QE to try and reflate the parabola. The Fed thinks they are creating a "wealth effect." All they have done is sow the seeds of the next crash.
By the way, SLW also has a parabola, but it is bullish. GL.
I just noticed there is double support at 19.83. This was an open gap which got filled. It is also support of a trendline, and it has touched it 3 times. I believe the 19.83 is the number which must hold.
Thanks, cowboy. As to projections, there are still 2 other gaps that need to be filled 18.89 and 17.78, and both are 23 cent gaps. I believe there may be more downside based on what I am seeing. On the 10 d hour chart, it appears a bearish EMA 13/34 crossover is about to occur. When the 13 moves below the 34, it indicates a change in trend. In this case it would be down.
On the 3 mo d chart, the trend is still down. Notice how the EMA 13 is below the EMA 34, and it shifted direction and is now pointing down.
SLW was rejected at the EMAs 5 and 9 both now located at 20.32. These 2 EMAs usually hug price action. When price action moves below the EMAs 5 and 9, the stock begins to break down.