Tuesday, June 29, 2010
I told you the market was building pressure and today was the release. A Black opening Marubozu is a strong bear candle. Friday and Monday were spinning tops, a sign that the market was not decided. It drove itself into the smallest corner created by two opposing forks.
Looking at the forks below we have found a natural resting place for Price at the confluence of several forks. In these situations the market will generally make a small effort to recover which the market did in the last 20 minutes.
But Price is sitting on the top of the Weekly Kumo. This Kumo has a flat top and it is huge. Breaking into the Weekly Kumo will be significant. The question is will the Bears be able to sell the market down into the cloud, or will the market trade the 1040 - 1120 range once more?
Look closely at the forks and ask yourself, do the bears have enough strength to drive the Price back into the opposite side of the pink fork?
Except for Smoothy, which has issued a stall warning, all the indicators (Hourly, Daily and Weekly) are solidly Bearish.
In conclusion, this confluence is probably too strong for the Bears to break. My opinion is that Price will trade up the edge of the Weekly Kumo until it nears the top tine of the Pink fork near 1090. With the indicators in such a Bearish condition it is difficult to say the market will turn back up therefore should the market sell off below 1010 I would question my forecast.
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I found this on Kenny's site. lol
We are on the edge of a major market tipping point.
do you see a yellow alert?
This is an alternate fork that actually looks better to me than the green fork that has served us so well. We can keep both but this fork of lesser pitch keeps Price on one side without a cross back to the opposite side again. Cross backs happen but not all that often.
If this is P3 there should be an acceleration which breaks the bottom trend line. In that case I'll redraw the fork. Also for you guys learning about Andrews Pitchforks. Notice how the -0.50% extended tine fits the pattern (bottom tine on the upward fork).
Price is likely to trade between 1055 and 1040 for the rest of the day.
Squeezed till it popped!
Analysis presented on this Blog has only informational, and educational purpose, and does not represent a proposal for buying or selling contracts, equities or currency.
Posted by Robert Campbell at 06:32