Bearish Meeting Line on MCP

Weekly: MCP’s weekly chart shows that it was trying to break the 50% Fibonacci Retracement level but wasn’t able to do so. The same thing happened on the Kijun Sen Cross which was broken mid-week but was short on staying above it at on Friday. A sideways with bullish bias might be seen this week for MCP.

Daily: Daily chart is showing a bearish candlestick pattern by way of Bearish Meeting Line. The Bearish Meeting Line consists of two candlesticks, first a green candlestick then a red one, both not short. The closing prices of both days should be the same or very close. The occurrence of this pattern reflects a stalemate between bulls and bears. The market is in an uptrend when a strong green candlestick is formed, which further supports the trend. The next day opens sharply higher causing the bulls to feel more confident. Then the bears start a counterattack pushing prices down and leading to a close equal to (or very close to) the previous close.

Notice also that the 50% Fibonacci Retracement level is acting as a resistance at this time and looks strong. In case MCP will retrace, immediate support can be seen at 11.13 or at 61.8% Fibonacci Retracement level. Observe that this line has an interesting story where price action took place. It has been used as a resistance and support at some point in time. Notice also we have projected another support coming from our slope.

RSI or Relative Strength Index has retraced from the 70 level. Time to loosen up a bit? On the other hand, if the bearish candlestick pattern will not be confirmed, we might see MCP around 13.30 At that point RSI will be overbought. Based on a 1 year time frame, highest recorded RSI was at 94.

Caveat!

 

Indicators based on Ichimoku system

Weekly Chart Oct 7 – 11, 2013

Price location relative to Kumo (n/a)
Tenkan Sen/Kejun Sen Cross (Bearish)
Kijun Sen Cross (Bearish)
Chikou Span Cross (Bearish)

Daily Chart 11-Oct

Price location relative to Kumo (Bullish)
Tenkan Sen/Kejun Sen Cross (Weak Bullish)
Kijun Sen Cross (Bullish)
Chikou Span Cross (Bullish)

2 Responses to Bearish Meeting Line on MCP

  1. […] Bearish Meeting Line on MCP turned out to be a strong signal for reversal. Pulling out our chart last October 13 where we put […]

  2. […] few days back. Last time MCP hit a strong opposite force was Oct. 11. During that time we saw a Bearish Meeting Line. This Friday we are seeing a spinning top. But notice also that each dip of MCP we have our strong […]

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