This market is on the hinge(notice the apex of sorts which th red o forms). Unfortunately it has not been able to rally enough so tha it is in danger of breaking below its9650 support.
This is a very interesting chart. At a we have an upthrust followed by a rapid sell off with wide bars, closes at the bottom and heavy volume. This is heavy supply. The market makes a low at 104.62 and enters a tight trading range. Breaking out makes a higher high and b with its low volume and 2 small bars with the same close one might call a test of the breakout. The selling has dried up. From b to c notice how many of the strong up bars close on the high of the bar. None until the very wide range bar leading to c. This kind of vertical move at c often precedes a buying climax which we get at d. I believe that the bars from b to c did not close at the high because there was very heavy selling into the advance. Further I believe a lot of demand was used up supporting the market and fighting the selling into the advance until c. The reversal a d says demand is temporarily exhausted. Notice the lack of volume for the next almost 2 hours. F is an upthrust and following bar with even less demand slumps back into the trading range. This begins another big sell off. The rally beginning at h ends right where is should if this market is bearish on a reversal bar.There are two ways to argue today's action. The heavy selling could not make a dent in the demand and despite the heavy selling prices did not decline substantially. We are going up. Or the demand is getting exhausted and will soon give out as this selling has been going on for two weeks and shows no sign of abating.
Heavy volume inside a trading range can mean large traders are exiting.
Heavy volume inside a trading range can mean large traders are exiting.
