Retracement, timezones, candles
by: despair16 11/19/1999 2:40 am EST
Msg: 18751 of 18755
Nice action today.
Although I think on the whole they are crap, Candlestick theory showed an engulfing bear formation on the 16th. This led to the downturn to below 16, but the quick snapback confirmed the channel bottom.
Yesterday the main Fibonacci retracement level was breached, indicating blue skies ahead. The high today gave us confirmation of the channel top, and also showed a rising window candle (bullish). This candle coming after the bearish formation is indicative of an angular base being formed which often leads to an acceleration of the advance.
A positive close today with no breach of the 20 level will be extremely bullish. Guess if that happens we will get new coverage, upgrades or some such fundamental junk next week.
A negative close, as long as we stay above 18.5 is OK also, but in this case we will just continue with a gradual ascent.
Timezones indicate the former, with a nice peak for thanksgiving. On the whole things look quite healthy and although I can't believe I'm saying this, I wouldn't sell into strength over the next few days.
PS= not my opinion, I read it in the entrails of a sheep. (I think it was a sheep, but it could have been a goat. Wish I could remember if sheep or goat entrails are bullish or not. Maybe I need a new indicator |
