Looking at the daily chart still has some uncertainty for me.
I am holding seven stocks between two accounts and they are all coming back nicely and I have a number of prospects that I want to enter but am reluctant to do so at the moment.
I hope I am wrong and that it keeps on going up but I need at least another positive day of convincing from an EW perspective.
We may actually have seen a large ABC correction ?
(click to expand)
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It would be an uncharacteristically strong wave-4....
The XJO chart here allows for the current bounce to continue up to the target area around 6000. Although the powerful leg lower to wave (i) doesn't subdivide, the recent bounce is enough to suggest wave (ii) is in motion. Rejection around 6000 should kick-start the next impulsive move lower.
A push above the 50-61.8% level would add weight to a major low already being made. Not likely but the market is a strange creature. Especially US markets!
The XJO chart here allows for the current bounce to continue up to the target area around 6000. Although the powerful leg lower to wave (i) doesn't subdivide, the recent bounce is enough to suggest wave (ii) is in motion. Rejection around 6000 should kick-start the next impulsive move lower.
A push above the 50-61.8% level would add weight to a major low already being made. Not likely but the market is a strange creature. Especially US markets!
If there is a charge toward the 6000, I would imagine there would be some aggressive selling, I know I will be lightening up.
Not that i know anything about charting, but on the charts of some of my shares, there is a definite uptrend in the MACD and Coppock indicators from about 20th March. Which does correspond with the general trend on your posted charts, as one would expect, just learning go easy.
Well it took a decade or so to recover to new highs from the 08' GFC. I would guess this crisis will be much the same.Do you anticipate those possible moves could happen over such a short period of time to get back up to the 7000
Hi OWG, how much weight do you put on the expected timing in your chart?
Not that i know anything about charting, but on the charts of some of my shares, there is a definite uptrend in the MACD and Coppock indicators from about 20th March. Which does correspond with the general trend on your posted charts, as one would expect, just learning go easy.
Coppock used 11 and 14 periods because, according to an Episcopal priest, this was the average mourning period when grieving the loss of a loved one. Coppock theorized that the recovery period for stock market losses would be similar to this timeframe.
Thanks for the info investoboy, the coppock indicator on the shares I was talking about, I bought they were, PPS, CWY, VUK and MCR on 23/03 or 24/03 from memory, but as I said I am hopeless at charting.FWIW, Coppock is supposed to be used just on the monthly chart and is considered a buy signal when turning up from a low level (currently turning down from a high level on monthly charts).
FWIW part 2, this is the reasoning behind the parameters chosen for the indicator:
Make of that kind of indicator construction what you will
Fearless as ever OWG! Volatility is unwinding, so I think the near term direction is up. Will that rising wedge a) -b) become a price channel, I hope soXAO continues to work it's way up as a corrective 2nd wave. Looking at the current structure, eg what looks to be a triangle for wave 'b', you can see that investors and traders are hesitant. This triangle (if correctly interpreted), makes all the difference, as it implies a 3 wave push up to complete wave 'A'....which is corrective, thus confirming that the bigger wave 2 is a corrective wave. A few assumptions at the moment in how wave 2 may look.
If the DJI heads to a new high, then there's a good chance the XAO will push higher to the 61.8% retracement levels or to 7000, but not form a new high to complete wave 2 up.
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I'm finding the potential of further increases scarier than a decrease to the xao. It also raises questions as to who is buying?!
Is it QE? or are insto's buying too?
It also raises questions as to who is buying?!
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