Reading general trending is important as it gives us a correlation between our major index and how it can affects others like Commodity. In my previous blog, I have highlighted the Gold and Silver Correction - plunging 2 supports line. However, I miss out the chart of showing the US Index on May 6. From the chart, you can see 2 strong candlesticks called "2 white soldiers". I am sensitive to some strong candlestick indicators as guidance, as they have higher probability than others. From my US Index of past 1.5 years, "2 white Soldiers" candlesticks had occurred 6 times. 5x times indicated up trend or bullish reversal and only 1x invalid.
I have again try to correlate Noble Group and US Dollars Index, very obvious you can see the High and Down relationship.
This is a good sign if you are playing commodity stock - The TA indicators messages are: Avoid LONG those commodity stocks temporary.
Articles to read,
http://seekingalpha.com/article/268673-the-commodity-run-is-over-time-to-go-long-usd-cad
No comments:
Post a Comment