I wrote in last week review, “The bulls seem far from finished, but they'll have a tough job ahead of them.” The bull is tired, but he is not dead yet.
Let’s look at the charts……
STI Open: 3,479.01
STI High: 3,490.74
STI Low: 3,425.31
STI Close: 3,452.01
Price Change: -35.38
Percentage Change: -1.01%
Total Volume: 1.037 billion
Weekly Chart MACD histogram is ticking down. STI sank to 3,425 low for the week but bounce back to 3,450.
Daily Chart MACD histogram is ticking up. The rebound was helped by Friday bargain hunting of blue chips. STI is sitting at 3,450 support.
In bull markets, experienced traders buy price dips, while beginners chase rallies and then get stopped out during inevitable reactions. That’s how you can lose money buying in a bull market,
In bear markets, experienced traders sell short during rallies, when they detect them running out of steam. Bear market rallies tend to be especially sharp, as weak shorts covers in a panic, driving prices highes.
The markets appears in transition from bullish to bearish, but the market is not a one-way street.
Be careful, protect your trades with stops and be very quick to take profits when you have them - this is not the season of lasting trends.
Best wishes for the week ahead.
Divergence Trader
The post Bull Wounded, Not Dead – Weekly Review For 11th May 2015 appeared first on Divergence Trader.
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