I believe that we are witnessing a buying climax, a rapid acceleration of price and volume at the culmination of a move. Notice how the angle of advance over the past week and especially the past 3 days has steepened and then steepened further. We have had the 2 highest volume days since the selling climax in the beginning of February. So yesterday we had a rapid advance amidst extreme bullishness which creates the conditions where large holders have a large market in which they can sell large quantities without pushing the market against themselves. Today that selling basically overwhelmed the demand and filled all the buyers in a tiny range. The volume was even larger than yesterday and the buyers could not push prices up. The demand however was sufficient to hold prices up. We are now very suspicious of this move.
Notice the sharp up move on the 15 minute chart which begins with the selling climax at 119. Both days after the morning supply is absorbed the market moves up easily on little volume until today. The market accelerates sharply and then after hitting the high of 121.565 has a reversal bar on lower volume. Perhaps the demand is becoming exhausted. This is confirmed by going down with ease of movement on higher volume than we went up on in the final little rally. Other traders saw the same thing and sold sensing the turn. The market is supported at 12 noon and at 12:30 the lack of supply is confirmed. The market moves sideways in a narrow range from 1-3 and perhaps someday we will talk about absorption, but there is no sign that this range is absorption and that is confirmed by the tiny upthrust at 2:45 and the subsequent decline on heavier volume than the rally. Supply is overcoming demand so let's see if we can get some supply to push prices down.
I believe that we are witnessing a buying climax, a rapid acceleration of price and volume at the culmination of a move. Notice how the angle of advance over the past week and especially the past 3 days has steepened and then steepened further. We have had the 2 highest volume days since the selling climax in the beginning of February. So yesterday we had a rapid advance amidst extreme bullishness which creates the conditions where large holders have a large market in which they can sell large quantities without pushing the market against themselves. Today that selling basically overwhelmed the demand and filled all the buyers in a tiny range. The volume was even larger than yesterday and the buyers could not push prices up. The demand however was sufficient to hold prices up. We are now very suspicious of this move.
Notice the sharp up move on the 15 minute chart which begins with the selling climax at 119. Both days after the morning supply is absorbed the market moves up easily on little volume until today. The market accelerates sharply and then after hitting the high of 121.565 has a reversal bar on lower volume. Perhaps the demand is becoming exhausted. This is confirmed by going down with ease of movement on higher volume than we went up on in the final little rally. Other traders saw the same thing and sold sensing the turn. The market is supported at 12 noon and at 12:30 the lack of supply is confirmed. The market moves sideways in a narrow range from 1-3 and perhaps someday we will talk about absorption, but there is no sign that this range is absorption and that is confirmed by the tiny upthrust at 2:45 and the subsequent decline on heavier volume than the rally. Supply is overcoming demand so let's see if we can get some supply to push prices down.
