After an almost 10% drop in just over a month in this index, I see some people already looking for entry points to go long again, as in long term. There are several technical aspects of great concern to me, pointing to something completely different. Here is a few.
• The red lines indicate that the price has now been in a bearish divergence with several indicators over a long time.
• The yellow lines show a previous downward move in indicators, but mostly a sideways movement by the price over the same period.
• My question: What are the chances of getting another sideways price movement in short succession? I have my doubts about that one.
• Most important for me to be aware of is the fact that the MACD has now turned downwards. It is a substantial distance from the zero line, and on monthly charts one does not see a change in direction of the MACD every month or two.
All in all, not a good outlook in my view, but that ties in with most indices worldwide.
• The red lines indicate that the price has now been in a bearish divergence with several indicators over a long time.
• The yellow lines show a previous downward move in indicators, but mostly a sideways movement by the price over the same period.
• My question: What are the chances of getting another sideways price movement in short succession? I have my doubts about that one.
• Most important for me to be aware of is the fact that the MACD has now turned downwards. It is a substantial distance from the zero line, and on monthly charts one does not see a change in direction of the MACD every month or two.
All in all, not a good outlook in my view, but that ties in with most indices worldwide.