Posted by frtaylor on 30th of Aug 2015 at 01:22 pm
What jumps to my mind regarding the sharp bounce off the 200
weekly MA is this:
1) It's the first test since the initial back test in 2011 after
price broke above the 200 weekly. That's less bearish than if price
had already tested it once or twice recently.
2) With the sell-off and subsequent rebound being so steep, it
suggests to me that the odds are against price turning immediately
back down and breaking through that MA. Anything can happen of
course, and I am in no way taking or suggesting to take a trade or
investment position based on my admittedly amateur view. But price
had a strong reaction off that level, and I take that to be
bullish. I hope someone disagrees with me here, so I can improve my
understanding.
All valid points...just something to monitor. I'm more
interested in watching the 2014 lows than that moving average.
These are simply meant to serve as guides..what's important is to
focus on making objective entries on the time frame you
prefer.
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
What jumps to my mind
Dow Weekly Views
Posted by frtaylor on 30th of Aug 2015 at 01:22 pm
What jumps to my mind regarding the sharp bounce off the 200 weekly MA is this:
1) It's the first test since the initial back test in 2011 after price broke above the 200 weekly. That's less bearish than if price had already tested it once or twice recently.
2) With the sell-off and subsequent rebound being so steep, it suggests to me that the odds are against price turning immediately back down and breaking through that MA. Anything can happen of course, and I am in no way taking or suggesting to take a trade or investment position based on my admittedly amateur view. But price had a strong reaction off that level, and I take that to be bullish. I hope someone disagrees with me here, so I can improve my understanding.
All valid points...just something to
Posted by steve on 30th of Aug 2015 at 02:24 pm
All valid points...just something to monitor. I'm more interested in watching the 2014 lows than that moving average. These are simply meant to serve as guides..what's important is to focus on making objective entries on the time frame you prefer.