$NYMO - Chart Link - The NYMO is now quite
oversold and the 2 RSI closed at 0.24% on Friday, therefore the
market is probably getting close to some kind of oversold bounce
soon. But again what kind of bounce will it be? Take a
look at the history and notice that it was quite a bit lower in
August of last year and in May 2010. Also notice that
happened during those times is that the market put in an oversold
bounce, but then pulled back again to form a lower low. Also
notice during those two times that the NYMO formed a positive
divergence i.e. it formed a higher low while the NYSE formed a
lower low.
Perhaps we'll see something similar this time around i.e. an
oversold bounce soon, but then another pullback to form a lower
low, while the NYMO forms a higher low
NYMO and NAMO Indicators comments
Posted by matt on 19th of May 2012 at 05:50 pm
$NYMO - Chart Link - The NYMO is now quite oversold and the 2 RSI closed at 0.24% on Friday, therefore the market is probably getting close to some kind of oversold bounce soon. But again what kind of bounce will it be? Take a look at the history and notice that it was quite a bit lower in August of last year and in May 2010. Also notice that happened during those times is that the market put in an oversold bounce, but then pulled back again to form a lower low. Also notice during those two times that the NYMO formed a positive divergence i.e. it formed a higher low while the NYSE formed a lower low.
Perhaps we'll see something similar this time around i.e. an oversold bounce soon, but then another pullback to form a lower low, while the NYMO forms a higher low
$NYMO - Chart Link - The NYMO is not yet below its lower Bollinger Band
$NAMO - Chart Link - The NAMO chart hasn't yet closed below its lower Bollinger Bands, though it's close.