Saturday, September 20, 2014
CPO update - A quick review
Short and Mid-term BULLS have a great time goring the bears looking at the Daily charts on the left. Is this the end of a run or just a pull back correction before it scale higher? Maybe we are trading within the 2200 1900 band until a new trend emerge?
My analysis of the weekly charts did not imply the big bull is there. More likely it is a rebound after a great deep near vertical fall. I am not be too optimistic to call the bear is over judging from my interpretation of the weekly indicators.
Where is the support (S) and resistance (R)? I do not subscribe to this idea of S&R believing firmly that they are just wild imagination of people who do not understand that trend is all that matters.
When the trend is set in motion in UP move, any resistance levels (if you believe there are any) will be broken. Similarly if the trend is DOWN, any support will be breached! I firmly believe that as long as the trend has not ended or about to end, I wouldn't want to waste time trying to figure out all the S&R using whatever techniques that you could or might have learn along the way.
A lot of the materials are purely academic reference knowledge. Bottom line is when it is time for the trend change it will change irrespective what news is reported or whoever is calling the market reversal. Believe in your chart and your analysis. What matters is your own profits!
Have a great week ahead and enjoy the ride!