PHYS – Hourly Elder Impulse System, 24 May

Here’s the hourly Elder chart for PHYS. As we can see, price is melting off all of the 1st hours big gains. In fact the price bar has turned blue because the MACD histogram is decreasing. For a green, both the MACD histogram and the 13 hour exponential moving average must be increasing. RSI was indicating a highly over-bought condition but has backed off nicely with a reading of 61. There definitely was some divergence between the MACD histogram and price on the swing high this morning. The height of the histogram peak was lower than the peak made a couple of days ago, which was lower than this morning’s price peak. MACD measures momentum and it told us that the momentum of this morning’s move was not as high as the momentum generated with the last swing high, therefore divergence and the resulting sell off. We need to see some late day rallying back up to 13.20 plus for me to feel good about today’s action.

Advertisements
This entry was posted in Matrix Sentry TA, PHYS. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s