For those of you still following this chart, which after numerous attempts to support the market (on the Daily chart), have all failed.
On Friday 12th Feb, price put in a test type bar (remember the 'generic' test = narrow spread downbar, closing mid to high, with low volume), and it meets all of the criteria quite well, except for the low volume. The volume was probably about average, although it was certainly lower than the mini shakeout type bar on Thursday.
So it isn't a perfect test, and it could certainly have been better, however in the real market things are rarely textbook perfect, and sometimes the analysis needs to be a bit flexible to match the imperfections. Anyway, for the test bar to be considered a success the next bar should close higher..so we'll see how it goes.
Daily Chart (see below for a Weekly chart)
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Since we have been following the fortunes of this chart, the weekly bars have not really shown any potentially bullish tendencies at all.
(so when we saw some possible support on the daily chart, they have not been seen or confirmed on the weekly chart - and remember - as I have mentioned previously- with all the extra information contained within a weekly bar, when compared to a daily bar, the weekly bars will always have a stronger influence over the chart)
This week, as price fell to equal the previous lows - spread narrowed, when compared to the previous bar - but volume increased (and was the highest of the last five bars), which suggests that an element of support has entered this market on the larger timeframe......finally.
Let's see if price can respond positively in response to this week's bar, next week.
