$USD vs. Gold still in play; SPX remains range bound. Watch as the greenback and gold approach for a kiss. Will they reverse or will they cross?
A failed setup in POT followed by a long, very tight, narrow range chop finally succumbed to weakness in the last hour after failing to take out the downsloping 20 EMA. The shooting star is the tell.
2 comments:
Jamie - I've seen these shooting stars in in these same scenarios time and time again. Do you have any insight as to what is going on during this bar? Why does it spike like that before collapsing?
Joe
Joe,
Price held support of the blue line segment. Buyers stepped in and managed to push price above the $114.00 whole $ level. When it stalled and failed to hold $114.00 as support on the retest, buyers bailed and sellers took over.
These types of setups tend to form leading into the last segment of the trading session. A break above the 20 EMA would have resulted in a rally back 50 MA, a failure as was the case here, leads to new lows.
Momentum traders tend to focus on the first and last hour of the trading session. If we can position ourselves on the right side of the trade, we can profit by following the smart money.
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