Medium Term Oversold
Medium Term Oversold
You rats are really having at it tonight and we need a comment cleaner. There are two chart I’d like to share before tomorrow:
You all probably remember my trusted medium term stochastic grid. It’s starting to look a bit oversold around the edges and although the condition can remain in place for several days I would look out for a breach of the 20/25 line, which traditionally precedes a meaningful rally. Which naturally would be our next opportunity for a reload.
In that context let’s also remember our Cubes channel, which is mostly what I’m following right now as the NDX/COMPQ is leading the pack on this regression. I believe it’s reasonable to expect that a breach of the upper channel boundary would be accompanied by a stochastic breakout (as described above) as well. So, let’s keep an eye out for both occurances.
As long as we stay inside this channel I expect us to keep weaving further down – I am not firm on a final target yet and need to collect more data.
Cheers,
Mole
