Beaish divergence was observed coincidentally on all 4 major indices i am tracking. This is a warning to me that the current uptrend is showing weakness. This does not mean the price will definitely turn down sharply. So how do we make use of this information?
1) I will not take any new position since there will be a risk of a retracement. Buying now may result in buying at the high.
2) I may turn to short stocks which are trading at resistance, weak on the indicators.
3) Watch how the bearish divergence may be invalidated by a strong bull movement.
Other observations include the high trading volume which has no follow through on Friday. I never like it when there is high volume and yet the price could not close higher. Granted, it may be a typical Friday where investors are more cautious. But high volume??? Also, i had this fear that we may be experiencing distribution recently.
Fed meeting is coming up! Time to play big small again keke Anyway, bradley turn date on the 27th Apr.... i will be cautious for any big movement.
Chartered recent strength caught my attention. I wonder any good news coming from the coy.
The rest of the shares, plenty of room to retrace since they are too far extended from 20DMA
DISCLAIMER: This is not an inducement to buy or sell. You should do your own analysis on top of my postings.
