Set back on the Kiwi

Morning Dynamic Traders

Looks like the weather might be taken a turn for the worse, doesn’t mean our trading does though!!

I left you with a question yesterday (apart from my riddle), would the divergence on the MACD have any say on Tuesday performance. The answer was yes.

If you look at the day chart price came to a previous support/resistance line and wasn’t too far away from the RN when it decided to drop.

This isn’t really enough evidence to go on for my liking. Below in the hour you can quite clearly see the Divergence from the MACD, then price started to fall at a RN. So we did have some warning of a change in direction.

Where’s price heading now?? Tomorrow we will find out and to leave you with some food for thought, I have marked out on the hour chart above the support line at the RN. Can also suggest you have a look at RSI and the other signal lines from the MACD and Stoch, who seem to be providing more guidance.

Happy Trading

Richard Monnery