The inverse head and shoulders pattern we saw on the hourly charts on yesterday now stands negated, beaten and badly bruised! This also gives us a lesson that chart patterns or indicators are not infallible. PRICE as the say is Supreme! Technically everything was well placed for us (a nice little up move we had envisaged) at yesterday’s close. So what was the story this morning glory? Well for starters we were DOWned on cRUDE shocks. Simply put with DOW bOILing and the global markets weak on the same concerns, we fared no better in the over all picture. In addition we had our Inflation Figures which though rose marginally compared to last week, were still a cause of discomfort. We opened weak as expected, strangely it is not a gap down (technically) nevertheless a very vicious move to the downside in the first few seconds. Rest of the day was spent amidst volatility and trying to protect the lows! On the daily chart we can see that we are still above (4093) the June 25th Low. I wouldn’t say that we have found ourselves THE BOTTOM, maybe its one of the bottoms, to be followed by more. Technically if this holds on Monday then one can be sure of it as a short term swing low and play for a pullback and look for a shorting opportunity near the EMA area. Thus passes another week marred with RED!
JULY: This is one of the peculiarly dangerous months to speculate in stocks. The other are October, January, September, April, November, May, March, June, December, August, and February.
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