Resuming the analysis from this chart I published on March 11th. Back then I called the current peak which worked as predicted, and we all were happy, but there are signs that started to develop that are rising concerns.
There is a Peak on February 2014, a bigger one on September 2014 and a new one forming on May 2015. The developing pattern is the dreaded Head and Shoulders.
Signs that concern me the most are:
There is a Peak on February 2014, a bigger one on September 2014 and a new one forming on May 2015. The developing pattern is the dreaded Head and Shoulders.
Signs that concern me the most are:
- The key Levels, if 260 is not broken, then this will be a confirmed H&S
- The average volume has been descending, which is not a good sign,
- The cash flow is drying
- The insider selling
- The bullish momentum is divergent, you can see three peaks, which are lower and lower while the trend is higher.
- The bullish ascending bars normally have lasted 5-6 weeks. We're on the 6th bullish bar.