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Newsletter / 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/

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