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Thursday, 16 July 2009

Price is struggling to climb

Good Morning Dynamic Traders,

A glorious start to the day weather wise, although its meant to get a little worse later on!!

While doing my update yesterday, price yesterday was struggling to climb, and then eventually through the course of the day price jumped dramatically and if you look in the day below you will see that price is once again struggling. Why is this?
There is a simple to answer to this question, which is a S/R area. In the day chart below you will see that price has climbed and is now hovering around a previous S/R line with a RN is close proximity and the VI is also joining in on the fun!













The question we are left with now is what will happen next. If you take a look at your studies you will see that that the RSI is losing confidence in price climbing, where as the MACD and Stochastics still have the confidence. What do you think will happen next?

Carpe Diem

Richard Monnery

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