Multiple and independent indications for market resistance:
- Resistance #1: The reaction hits 50% of the segment September high – November low.
- Resistance #2: haDelta hit resistance area
- Resistance #3: The smoother haDelta and its short average turned at resistance
Conclusion: Charts don’t lie. Heikin-ashi helps to read them better.
If you are not using heikin-ashi yet, you probably missed at least +45%:
Research in Motion $RIMM from $8.23 (Oct 5) to $11.98 (Nov 26).
- Ready to consolidate (haDelta is back at past resistance)
- In most cases, the first close above the Ichimoku cloud signals a bullish trend ahead (trailing stop is a must!)
- Double resistance: Ichimoko cloud and haDelta
- Note again and again (and again) the result of a crossing haDelta :: SMA(3) neat or at zero
Daily: Bullish (haDelta crossed above its SMS3 near zero).
Weekly: More space to run before haDelta resistance (red dashed line) is hit.
An update on the previous post:
Despite the big fall. haDelta moved horizontally (not ready for the much awaited reversal).
Dead cat bounce in sight.
Two scenarios here, short-term:
- A small reaction OR/AND
- haDelta may record a failure to go across its average SMA3
- Bull trap OR/AND
- More downside
S&P 500 is ready for the bounce (haDelta at support)
An update to the previous post (daily UPS 10/19/2012) showing (again) the power of haDelta crossings at/near zero:
Friday 10/19/2012 ended with haDelta below (<) its SMA3 and a crossing at zero (warning for a strong move ahead).
Monday 10/22/2012 UPS was down 1.02% ($71.56) after hitting an intraday low of $71.02
Another proof that haDelta :: SMA3 crossings at/near zero are explosive:
Monthly (the month is not over yet):
The indicators are still above their average.
Weekly (the week is not over yet):
Potential bullish haDelta :: SMA3 crossing at zero but haDelta is still below its average.
In the red zone.