I've been monitoring AZ, it made a divergent high back Nov with
the MACD, however the MACD was way above zero, and I've discussed
this before, that divergence when the MACD is well above zero often
does not produce much of a pullback and instead you get another run
up, which AZ did. I commented that a stock is MUCH more
vulnerable whenever the MACD recycles closer to zero and you
have the divergence. On that last rally to 7.5 the MACD had
recycled closer to zero while diverging, thus making it more
vulnerable this time around and that might be starting to play
out
right now you have the 50 day MA here, that's first support- if
that area doesn't hold, it may want to pullback to the larger
demand zone
the second imageshows the Dow Jones, where I discussed this
back in March/April - the divergence in early January didn't
produce much of a pullback because it was too far above zero, too
strong. However, once the MACD recycled into late March, that
finally produced more of a pullback
anyway the point is -whenever you see MACD divergence but MACD
is very far above zero, often times it doesn't produce much of a
pullback until you get that recycling action
AZ and MACD divergence and recycle
Posted by matt on 30th of Dec 2024 at 01:29 pm
I've been monitoring AZ, it made a divergent high back Nov with the MACD, however the MACD was way above zero, and I've discussed this before, that divergence when the MACD is well above zero often does not produce much of a pullback and instead you get another run up, which AZ did. I commented that a stock is MUCH more vulnerable whenever the MACD recycles closer to zero and you have the divergence. On that last rally to 7.5 the MACD had recycled closer to zero while diverging, thus making it more vulnerable this time around and that might be starting to play out
right now you have the 50 day MA here, that's first support- if that area doesn't hold, it may want to pullback to the larger demand zone
the second imageshows the Dow Jones, where I discussed this back in March/April - the divergence in early January didn't produce much of a pullback because it was too far above zero, too strong. However, once the MACD recycled into late March, that finally produced more of a pullback
anyway the point is -whenever you see MACD divergence but MACD is very far above zero, often times it doesn't produce much of a pullback until you get that recycling action
Thanks for the 2 examples.
Posted by rahemphill2 on 30th of Dec 2024 at 08:17 pm
Thanks for the 2 examples. Much appreciated
Matt, $AZ what does it
Posted by pmahoney on 30th of Dec 2024 at 02:18 pm
Matt, $AZ what does it tell you when the Slow STO is still above 80?
Thanks Matt. Always open to
Posted by kevinkim9600 on 30th of Dec 2024 at 01:33 pm
Thanks Matt. Always open to hearing input.