Wednesday, March 27, 2013

Fibonacci Ticks 233-6765

Prices gapped lower after hours considerably. Opening under MA's on the 233 Tick chart, price tested overhead resistance and went lower a few ticks. Double Stochastics and Ergodic were extremely negative at the bell, but formed bullish divergence at the low. Price then had a failed new low and bounced higher for a fresh new high. As price approached the 1550 level it initially failed. Once it broke above, there was more consolidation and sideways action at the 1550 level, but now acting as support. Prices rallied off a double bottom at 1550 and rallied into the close, finishing at the high of the day. On our longer term Tick charts, the MA's gave incredibly accurate trading signals. We opened well below the MA's across all the long term Ticks, and had bearish reading on Ergodic and Double Stochastics. On the short covering rally at 10am prices found first resistance at the overhead MA's. Once they were breached, they turned into support in the afternoon as price bounced off of the MA's and rallied into the close. In the fifteen minutes after the bell, Futures sank back to the MA's on the 6765 Tick and fell below them on the intermediate to long term Tick charts, with Ergodic and Double Stochastics rolling over.