Thursday, March 21, 2013

Fibonacci Ticks 233-6765

Price opened up this morning with overhead resistance from the MA's. We bounced off them and set new lows. Price was choppy for a good part of an hour before turning up with the MA's. It got a bit overextended after rallying to new intraday highs and once overhead resistance from the MA's came back into play the market tumbled to new lows. On the long term tick charts, price had a difficult time getting up to the overhead resistance MA's. By the time it intersected with the 6765 tick MA's it was totally overextended and looked like what had been a short covering rally. With that weakness and no new buyers, initiated selling began and the market fell very quickly.