Market continues to rally as earnings fuel the rally, but is it sustainable!!! Significant resistance lies ahead and market will need all the strength to push through to make NEW HIGHS. What are charts telling us? BPNYA crossed EMA(30) triggering BUY signal and Volatility ($VIX) continues to subside, however we are not out of the woods yet as the trend has yet to be established. As market climbs in the resistance zone backed by earnings season, it will need significant strength to make a move above MA(200) area. Also keep an eye on RSI which will soon reach overbought territory. Weekly chart is suggesting that trend might be reversing as RSI getting closer to 50 mark while MACD appears to be turning around. NYUD is not yet confirming the trend change as it continues to remain below EMA(21) along with RSI staying below 50 mark. Both of these conditions can change in coming days ahead. Although this rally appears to be strong, it has yet to provide confirmation. It is better to remain cautious and wait for the pullback which will provide the low risk entry. So far this rally is fueled by earnings.
What does it mean for our Investments?
Market trying to reverse trend, remain cautious... Comments are closed.
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