Monday, August 22, 2011

08.22.2011







The final candle that appeared on this quarter day chart (six hour) was that of a hammer formation. This is where the price action sells off at the start of the session and then manages to get back pretty much all of its losses. The price action opened at 12pm France time and 6am New York time which had the price at $43.81 which seen the price plummet down to $42.52 and the close of this chart shows us that we are at $43.77 and pretty much where we were six hours ago. The trend is having the price action move up towards the upper bands which shows the market is over extended or over bought. Just because this is the case does not mean that the market will sell. Rather if the market does not sell of or even correct through time that the gains we will see should be greater than normal as we are attempting to go parabolic on this particular time frame. If this again goes through this could mean $2.00 moves in an hour kind of action and when this transpires then we have blow off tops that could be around the corner waiting for us which is common when markets get over extended. Overall the secret is to hold above $42.25. Originally it was to hold above $38.11 and this has been done successful. Buyers and in control with this rising five day average and enjoy the day. Be back later

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