Above is the 1 min 3C chart. You can see the breakout was put on by the market makers and quickly sold off to trap longs entering the breakout and stopping them out around $111.30. The rest of the time they distributed into the advance.
Here's the 3C 5 min chart, we see the same overall distribution. In the Box we have a bearish candlestick pattern called "Falling 3 Methods" . To confirm the candlestick pattern we need price below the $111.38-$111.40 area-that will confirm the pattern. right now we are at $111.39 so a little more and I'd think some downside momentum will pick up. Certainly longs from the ascending triangle are starting to get worried. IF/When they become sellers, it will help move the market down.
I said earlier-either in a comment or email-sorry? that it looked like a retest of the highs, either from yesterday or all time highs for the bounce. If price continues down it will be very discouraging to bulls as the test will have failed.
3 comments:
There just doesn't seem to be any selling volume to get this cascading downwards. Just seems to be floating up on fumes, and every time it does make a run downwards, the invisible hand (cough cough, the FED), makes sure that it is reversed to the upside quick sharp.
The above 3C charts say 'time to short' to me, but then frustratingly the market goes higher and closes higher. Next day, the same thing, repeated.
The main short coming with 3C is timing, it can tell you what they are doing, but not why or how much they have to distribute or accumulate if they are going short. So that's always been frustrating, but I've seen very few filed signals, especially when you get into the longer term charts.
Hi Brandt,
Yes, it is very frustrating. It's like saying "it's going to rain", but not saying when.
This whole 'selling in to strength' by the smart money which 3C has been showing for over a week now (pretty strong signals it seems), surely it must come to fruition in a reasonable amount of time? Especially as it's evident on 5minute, 10minute 3C charts etc.
Seeing as there is more Fed POMO action monday:
http://www.zerohedge.com/article/upcoming-pomo-actions-today-process-and-monday
It looks like this 'reversal' isn't going to happen soon. Since it 'bounced', It looks like an upward thrust move on vapour volume more than a bounce to me. I'd like to see this reversal sooner rather than later to my sanity! But, what's coming up news-wise that could be the catalyst?
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