DJI 30 Jul

New pivots for next week show we will open above the weekly pivot, giving a bullish bias for the week ahead. However there is a negative divergence on Stoch and a bearish candle printed on Friday so some chop and a pullback to the weekly pivot before a further rally is my preference. 25800 is the key level to close above this week. August is historically weak and although I expect a move lower soon, i'm waiting for price to confirm before going short. BTFD until the pivots break.

Kommentera:

Move to the WP gave an initial bounce where I got in long. However it was a weak bounce I and took risk out to get stopped on entry. Closed below the WP and as @pivotalpivots pointed out, SPX and other indices also have it as resistance above. Tomorrow is important, a backtest of the WP could give a good short entry or a recovery above would be a long. This is the great thing about pivots- they take the bias and emotion out of trading and enable you to flip as price dictates.

Stoch divergence combined with candlestick patterns also a great tool.