Despite a sell pressure this week the daily trend line has held so far, and I still don’t see any divergence on the daily chart so if it doesn’t break early next week we are headed in my opinion for a strong rally. On the other hand if the daily trend line breaks then the next target to watch is the weekly trend line which with the current weekly negative divergence may indicate a much stronger correction.
In the short term it looks like we are either in a triangle or will be breaking down early Monday. A break down may create a positive divergence and a long signal.
Battle Plan for the 1/6/2014
Neutral, let the market decide first
* Stop loss lines should be triggered if there is an interval close above them (i.e. 60 min or 120 min ), they are published in the daily blog and updated during trading hours on twitter.
* Take profit lines should be triggered immediately when crossed, they are usually issued during the trading day on twitter.
* Entry signals should be triggered when crossed, but take into account that until there is a confirmation (i.e. close of the interval across the entry signal) , the signal can become a reversal signal.
For FREE updates in real time follow me on Twitter
To comment or post your own signals join me on Facebook