Thursday 13 June 2013

40 Points up day after Accumulation seen yesterday

On yesterday's posting, I stated the it looked like we were seeing the start of accumulation. And boy, did we see the result today, with a massive 40 point rally into the close.  Price stopped at yesterday's supply zone, but it is not fresh, so we will need to look further up for the next supply zone. Around the 1660 handle.  So look to target that number tomorrow, buying the dips.

Today's action was a killer for any mean reversionist, but a profitable one for those that saw the trend early.  And if they had seen the accumulation late on yesterday, then they would have been rubbing their hands in anticipation.

Price moved down during the overnight, to a couple of points above the 1690/95 zone I mentioned yesterday, and then based before the large up move. This always seem to happen when we see accumulation the previous evening.  So it is something we should remember.

The closing volume seem normal, but trading has been on both the June and September contracts, so I really do not know if the volume is unusual.

So, I am expecting price to run up to the 1660 level tomorrow and may go higher over the next few days.

Here are some screenshots.  To add to my recent comments about using different type of charts to get more information, I have attached the 6 tick Range (no gap) bar type with the delta divergence indicator.







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