Footsie Broadening Top (D,W)

Since the last report which called for a top, price dropped steeply before finding support and rising from the ashes to surge to new all time highs. Let’s take a quick look using the daily and weekly charts.
 

FOOTSIE DAILY CHART 

We can see price recently declined before reversing back up to new highs. This sets up a 5 point broadening top formation. I really should have foreseen this setup as I have noticed it in many other markets I follow. Anyway, price now looks to be in the process of putting in the final point 5 high.
 
We can see price came down and found support around the 50 period (blue) and 100 period (red) moving averages. Price rallied from there which keeps these averages in a bullish formation.
 
The Bollinger Bands show the point 4 low was well outside the lower band which is commonly found at lows. I’d like to see price now get back up to the upper band.
 
The Relative Strength Indicator (RSI) is looking strong and I’d like to see the final high show a weaker reading here.
 
The Moving Average Convergence Divergence (MACD) indicator is now trending up and looking bullish.
 

FOOTSIE WEEKLY CHART 

We can see the recent low was right at support from the middle Bollinger Band. I’d like to see price get back up to the upper band now to put in the final high. The upper band is currently around 7150.
 
The recent low also found support at the dots from the Parabolic Stop and Reverse (PSAR) indicator so a bullish bias is retained.
 
The RSI looks like this coming top may set up a bearish divergence.
 
The MACD indicator made a bearish crossover on the recent move down but this proved to be a fake out and this indicator is back to a bullish bias and trending up.
 
Summing up, I still believe a final high is close at hand with only a touch higher to go.
 
 

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Disclaimer

All information contained in this website is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors. Put simply, it is JUST MY OPINION.

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