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Assessments / Blog 2017-05-08 ES #F Volume Divergence on weekly chart In our newsletter on 6 May 2017 we warned about a possible pullback, which is now in progress after selling pressure developed. On the weekly chart a clear Divergence on the Volume Simplified Oscillator to the downside is forming and price is trading at the top of the weekly regression channel, so be careful for any significant pullbacks or a possible reversal. The current up wave in progress is also the lowest up wave (points move) so far (86 points on 34.2 million contracts) since the up wave that ended on 16 July 2007 (which progressed 74.25 points on 17.7 million contracts). So far it is also the lowest volume up wave since the up wave ended on 1 February 2016 and the angle of the up wave line is also not as steep as the previous up wave lines. It is still possible that a new high can be made, but in the longer term (based on the weekly chart) it looks like demand is weakening for now. The current up wave is still in progress and a final assessment will be done when this current up wave come to an end. This assessment should give us an important clue as to the future price direction. You can join the Faceboook Group "Trading For An Income" here: https://www.facebook.com/groups/1832814697041353/ The information delivered here is for educational purposes only and is not intended to be a recommendation to purchase or sell any of the stocks, futures or other securities referenced. All references are for illustrative purposes only and are not considered endorsed or recommended for purchase or sale by MC Trading. Trading Forex, Stocks and Options, Futures and any Commodity or ETF contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results and no representation is being made that any account will or is likely to achieve profits or losses similar to those shown. MCTrading has taken reasonable measures to ensure the accuracy of the information contained herein and on this website, however MCTrading does not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or from an inability to access such information or any delay in or failure of the transmission or receipt of any instruction or notification in connection therewith. |