I agree, so we watch for a reversal back above the $86.00 line, which is where it failed several times on the daily.
I'd say give it 5 to 10 trading days, we will find its true defined direction at that point.
What we see here is inevitable, ... even on the weekly chart below, ... support is breaking down.
The last time its W%R and Stochastic dropped from over-bought (black-circles and arrows), it gave back all of its gains pre-2012, but I would expect some attempts at higher levels, or just a sideways base for a short time.
The purple squares will more than likely play out in or near similar fashion, an attempt for a higher high looked to be a good bet back in July-2013 but it failed and down she went. I would guess that the 20-day EMA is a certain target.
Once the MACD bars drop below center (0), we should expect a continuation to lower levels, but the thing to watch for now are the MACD lines, once they cross, it could move lower quickly, just like in May, June and July-2013.
screencast.com
~~
Not enough data on the Monthly yet, ... it takes more time to get the longer term view, but as of this week, it failed to hold the 200-day EMA and the W%R is now looking down from overbought. The rest of the lower indicators are still bullish to neutral, but that should change as time passes. So when you look at this Monthly chart, it really looks tame and simple, it had much better runs back in the 2009/2010 time frame.
screencast.com
Take Care,
Aram James |
