TECH TALK TUESDAY

BULL CANDLES and MACD

Check back on our discussion of MACD in Tech Talk!!

        So XLE is comprised of about 30 stocks, and the above curve measures the speed with which the number of stocks OVER their 50-day moving average increase or decrease, based on the MACD formula (Above).

        Below is based on the price of crude oil, interpreted in Bull Candles.

 On or about September 3, a Bull Candle appears, (unmarked), just poking its head above the trading range at 6.20, then falling back to 6.10 support level.

What no one got is Chart Above + Chart Below = Saudi Oil Plant attacked by BLACK SWAN!! – Now, was it a FALSE FLAG ATTACK?

With 19 precision hits was it the Houthi Rebels, you think?

Was it the way to get the oil price up where it is needed for producers?

        So, when MACD Signals and Bull Candles result, Big Things can happen!

Here we have a downtrend, looking as if it is punctured by two big Bull candles already penetrating the 50-day moving average to the upside.  Unlike Rogers, this cannot be a Three (3) White Soldiers formation as the 2^nd bull candle did not open within the body of the first bull candle.  Later it could become a two-candle continuation pattern, as long as the gap between the first two candles is still open. 

To me this seems quite promising.  Next Gen is a uranium finder, developer and miner, so it has the risk profile unlike that of petroleum companies.  As well this uptrend could flop, but when something is set in motion with this much energy underneath it.  If this continues, the 200-day moving average is within reach let’s say in a week or two, of being breached to the upside, again, a bullish development.  Now maybe in the next post or next week, we can see what the On-Balance-Volume is doing to validate or deny the current moves.