PCOMP approaching resistance level. Can it break?

Weekly chart shows that our index is approaching resistance brought by the downward slope. If you notice this slope has been tested twice already. Each test results to a deep retrace. Notice that the index registers a bullish sign via Kijun Sen cross but this line can’t keep up with the bears. After a week or two, the line broke and price went down. Will this happen again? This week, our index registers a Kijun Sen Cross which is considered a bullish sign but it is near its resistance and notice the Kumo transform from green to red.

RSI or Relative Strength Index history shows that current RSI is within the range of past RSIs when index retraces.

Looking at the candlesticks, we don’t see any bearish formation yet so our index may continue to rise to 6447 But this week and the week after will be very crucial. If things will get bad, we might see our index hit lower than 5700. Will it really hit 5454?

Caveat!

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felix

A computer engineer by profession and loves to develop online systems/websites. A self-taught stock trader who loves to share his knowledge and enjoys learning, expanding knowledge and staying well-informed. Most often he uses candlesticks, Fibonacci Retracement levels, Ichimoku system on his technical analysis but loves to hear some rumors as well.

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