Analysis
Fri 2/10/12
Bollinger Bands Indicator:
Conventional Interpretation: The Bollinger Bands are indicating an oversold condition. An oversold reading occurs when the close is nearer to the bottom band than the top band.
Additional Analysis: The market is in oversold territory.
Mov Avg 3 lines Indicator:
Note: In evaluating the short term, plot1 represents the fast moving average, and plot2 is the slow moving average. For the longer term analysis, plot2 is the fast moving average and plot3 is the slow moving average
Conventional Interpretation - Short Term: The market is bullish because the fast moving average is above the slow moving average.
Additional Analysis - Short Term: The market is EXTREMELY BULLISH. Everything in this indicator is pointing to higher prices: the fast average is above the slow average; the fast average is on an upward slope from the previous bar; the slow average is on an upward slope from the previous bar; and price is above the fast average and the slow average.
Conventional Interpretation - Long Term: The market is bullish because the fast moving average is above the slow moving average.
Additional Analysis - Long Term: The market is EXTREMELY BULLISH. Everything in this indicator is pointing to higher prices: the fast average is above the slow average; the fast average is on an upward slope from the previous bar; the slow average is on an upward slope from the previous bar; and price is above the fast average and the slow average.
Mov Avg-Exponential Indicator:
Conventional Interpretation: Price is below the moving average so the trend is down.
Additional Analysis: Market trend is DOWN.
RSI Indicator:
Conventional Interpretation: RSI (2.24) has issued a bullish signal. When RSI crosses below the oversold line (currently set at 20.00) a buy signal is issued.
Additional Analysis:
Stochastic - Fast Indicator:
Conventional Interpretation: The stochastic is in oversold territory (SlowK is at 0.00; this indicates a possible market rise is coming.
Additional Analysis: The long term trend is DOWN. The short term trend is DOWN. Don't be fooled looking for a bottom here because of this indicator. The stochastic indicator is only good at picking bottoms in a Bull Market (in which we are not). Exit short positions only if some other indicator tells you to.
Stochastic - Slow Indicator:
Conventional Interpretation: The stochastic is in oversold territory (SlowK is at 0.00); this indicates a possible market rise is coming.
Additional Analysis: The long term trend is DOWN. The short term trend is DOWN. Don't be fooled looking for a bottom here because of this indicator. The stochastic indicator is only good at picking bottoms in a Bull Market (in which we are not). Exit short positions only if some other indicator tells you to.
Swing Index Indicator:
Conventional Interpretation: The swing index is most often used to identify bars where the market is likely to change direction. A signal is generated when the swing index crosses zero. No signal has been generated here.
Additional Analysis: No additional interpretation.
Volatility Indicator: Volatility is in a downtrend based on a 9 bar moving average.
Volume Indicator:
Conventional Interpretation: The current new low is not accompanied by increasing volume, suggesting that the current move lacks broad participation. Look for a rebound soon.
Additional Analysis: The long term market trend, based on a 45 bar moving average, is DOWN. The short term market trend, based on a 5 bar moving average, is UP.The current new low is not accompanied by increasing volume, suggesting that the current move lacks broad participation. Look for a rebound soon.
ADX Indicator:
Conventional Interpretation: ADX measures the strength of the prevailing trend. A rising ADX indicates a strong underlying trend while a falling ADX suggests a weakening trend which is subject to reversal. Currently the ADX is rising.
Additional Analysis: The long term trend, based on a 45 bar moving average, is down. A rising ADX indicates that the current trend is healthy and should remain intact. Look for the current downtrending market to continue.
Comm Channel Index Indicator:
Conventional Interpretation: CCI (0.00) is in neutral territory. A signal is generated only when the CCI crosses above or below the neutral center region.
Additional Analysis: CCI often misses the early part of a new move because of the large amount of time spent out of the market in the neutral region. Initiating signals when CCI crosses zero, rather than waiting for CCI to cross out of the neutral region can often help overcome this. Given this interpretation, CCI (0.00) is currently long. The current long position position will be reversed when the CCI crosses below zero.However, the current 45 bar new low suggests liquidating any longpositions here.
DMI Indicator:
Conventional Interpretation: DMI+ is less than DMI-, indicating a downward trending market. A signal is generated when DMI+ crosses DMI-.
Additional Analysis: DMI is in bearish territory. And, the market put in a 45 bar new low here, adding bearish pressure.
MACD Indicator:
Conventional Interpretation: MACD is in bullish territory, but has not issued a signal here. MACD generates a signal when the FastMA crosses above or below the SlowMA.
Additional Analysis: The long term trend, based on a 45 bar moving average, is DOWN. The short term trend, based on a 9 bar moving average, is UP. MACD is in bullish territory. However, the recent downturn in the MacdMA may indicate a short term decline within the next few bars.
Momentum Indicator:
Conventional Interpretation: Momentum (0.00) is above zero, indicating an overbought market.
Additional Analysis: The long term trend, based on a 45 bar moving average, is DOWN. The short term trend, based on a 9 bar moving average, is UP. Momentum is in bullish territory.upside move is likely. However, the market put in a 45 bar new low here. More lows are possible.
Open Interest Indicator: Open Interest is trending up based on a 9 bar moving average. This is normal as delivery approaches and indicates increased liquidity.
Rate of change Indicator:
Conventional Interpretation: Rate of Change (0.00) is above zero, indicating an overbought market.
Additional Analysis: The long term trend, based on a 45 bar moving average, is DOWN. The short term trend, based on a 9 bar moving average, is UP. Rate of Change is in bullish territory. However, the market put in a 45 bar new low here. More lows are possible.
Important: This commentary is designed solely as a training tool for the understanding of technical analysis of the financial markets. It is not designed to provide any investment or other professional advice. | 