Friday, July 24, 2009

RSI divergences


Taking some pain as we approach 980ish which I thought was possible anyway.. contemplating adding to shorts into the close. I'm seeing some nice divergences building on intra-day, daily and also weekly which suggest we've run far enough and I'm sure chased enough Bears away to slice downward without much effort at all. Crude oil has reached it's .618 fib near it's upper channel line while RSI on the 120min. bars is Bearish diverged. Dollar coiled for a potential snap back higher next week and so I'm staying short and possibly adding into the weekend...


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