As expected, market is back to all time HIGH. All our readers hopefully managed to get on the BULL train and enjoy the gains so far but now what! What shall we expect in near future?
Daily chart is very bullish, however it does give us a subtle sign, Can you find it?
Check PPO in above daily chart, PPO(50,1) is simply distance between Price & 50 day moving average and anytime it is closer to +5 then expect market pullback or sideways action. Also clearly visible at end of Jan 2018 and see what happened!
Take a look at weekly chart below and Can you find similar signs?
Take a look at weekly chart below and Can you find similar signs?
Check PPO in above weekly chart, anytime it is closer to +10 then expect market pullback or sideways action. Clearly visible at end of Jan 2018, however at same time we had MACD and RSI divergences in place as well. That is not the case this time as of yet! We expect market to go 2 steps forward and 1 step backwards similar to price action from Apr 2014 - Jan 2015. Every time market pulls back to EMA(13) or EMA(26) on weekly chart might be low risk buying opportunity.
Our 1st target of this BULL market was 12000 which is very close by, however our extended target is 15000-18000. Do you think we can achieve it by 2020? Let us know your thoughts in comments.
Our 1st target of this BULL market was 12000 which is very close by, however our extended target is 15000-18000. Do you think we can achieve it by 2020? Let us know your thoughts in comments.