Trading the Line

The path of least resistance seems to be up again. Interesting very strong trend line resistance to overcome at about 1905 and rising. If we can get thru that then we target 1930ish

A Buy Signal occurred with yesterdays action above 1872.

The oscillator is starting to recover, though I would like to have seen it pull back to zero first. Perhaps this will be short-lived.

Yesterday's close above 1872 is a cautious Buy Signal, which I think requires a bit of confirmation.

If we can stay above 1866 for anoyther day or 2 then I would be more committed.

More of the same. Perhaps but a large squeeze is setting up. So be prepared for a volatile move in either or perhaps in both directions. A slingshot maybe. If we get a Buy signal with the oscillator close to zero, take it seriously.

Doesn't want to go down, doesn't want to go up… something's gotta give.

Having confirmed the break of line 1. it seems like we may be moving in a downwards channel heading for either line 2. or line 3. with targets at 1834 or 1786 respectively.

Mixed signals. Wait for the oscillator to confirm the move, and/or wait for a closing price above or below the current congestion.

The upside would appear to be rather limited, and so I am inclined to favour the downside. However recent action is a reminder of how bullish the market is/has been.

The recent increase in daily volatility since beginning of 2014 is also suggesting that I will need to increase the intraday stops for the signals, hence 2 recent sell signals at the low of the day.

We did see a recovery of sorts so that the market is sitting right at the sell line. Frustrating indeed.

We are setting up for a large move, so we need to watch the oscillator now. If it recovers and moves above the upper black band then the large move may well be up. But at the moment the signals are sideways to downwards.

Choppy remains the order of the day with mixed signals still in place. The weak oscillator still suggesting lower prices perhaps after a token new high.