AEX: BLOWING OVER 560 gives a higher air pressure

Updated

Hi everyone,

A new daily chart update: now that the falling resistance line has been passed above the MA50, we can expect an upward movement again. 560 is an intermediate step that still needs to be taken. RSI is in the bull range, convincingly only above 55. Support can be found on the MA50 and the falling resistance line. Longs can be taken with caution given the upcoming US presidential election

Support: MA50 (gummy worm)
552
545

Resistance: 560
572
583

I provide regular updates based on the hourly chart!

Success Traders!

TT

Note

at the time of writing there is a breakthrough going on, keep an eye on RSI !! OB is needed (above 70)

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well done bulls, the breakthrough by 560 has been convincingly confirmed (RSI clearly OB!) now resistance upside rising trend channel, looking for a higher bottom next week!

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The big increase has taken me by surprise today, it can be seen as a short squeeze. The first target 572 has already been reached faster than expected given the breakout from the rising trend channel, the RSI is now heavily oversold, cooling is now necessary. Each decrease can now be seen as a buying opportunity

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cooling is needed: development in the RSI! after the OB rating, it now remains below 70, which indicates top formation. it is expected that we will be back within the green trend channel. MA50 will be the first support

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Cooling was needed, but such a cold shower? There's another opening gap now at 570 and you know they have an appeal. The search for a higher bottom can begin, we are almost at the bottom of the green rising trend channel, the RSI has an OS quotation, not really clear bottom formation yet. It is also looking at 560 now that there is no resistance. Next support should then become the falling red resistance line (blue arrow)
Expiration day tomorrow, I wouldn't be surprised if we get back to 570

Note

The bottom of the green trend channel has been tested, we can speak of a cautious higher bottom, the gap is working. RSI danger has not yet passed, for this it must come back into the bull range, which can already happen in the afternoon!

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The higher bottom is a fact and the gap has closed, Friday's hunch had come true. With today's opening there is a new gap around 571 which should be closed. We are also in an important resistance zone, it is now important to see if there is enough power to break through (RSI should become OB!). Above 575 the road is clear to 583 (top 21/07/20). If the 575 remains resistance, there is a risk of double top in the making (M - pattern)

Note

All gaps are closed! An important development is underway, the green trend channel has been abandoned, which may put an end to the upward movement. An M-pattern is completed. If the 558 is broken, it can drop back to the previously completed resistance line, now around 542 (see blue arrow), the RSI will be important for the next few hours! OS or not is now becoming crucial

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558 has been broken, the M-pattern completed with a price target around 542, this may also mean that the previously broken resistance line must be tested. An important mention is the RSI, it has not become OS, which increases the chances of a rebound. At the moment the dividing line 558/560 is clear, as long as we do not rise above this, the gaze should be directed to the target 542 ...

Note

As long as the dividing line 558 - 560 is not broken upwards, the gaze remains directed downwards, on Friday it served exactly as resistance, see also that the RSI has remained in the bear market range (red arrow). This morning a downward gap has closed immediately, it is important to keep an eye on the RSI again, it still retains its strength (no OS listing!). The falling resistance line continues to drop even further, this has become a less correct target point due to its lack of clarity. That is why I am now focusing more on the RSI at the moment! Above 558 the sky clears again for the bulls

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The target 542 of the M-pattern has been reached and also tapped as well as the falling resistance line, RSI has been narrowly OS, nevertheless we can bounce back here

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My expectation was that the falling resistance line would provide support, with the movement this morning we have come back down with an RSI in OS, this is a negative development, An important fact for the longer term trend is that zone 530 should be used for support if not, the sideways movement is a thing of the past and turning to a downward trend. We are not there yet, if the tide is to turn, the bulls will have to take action now

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The large support line around 530 has been tested several times, the RSI has remained above the OS zone with the second tap, this implies soil formation! . It is important that the red falling resistance line is broken upwards again, then I remove it from the graph.

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the bulls have done a good job, the important 530 is not broken, this keeps us in the sideways movement. A first buy signal in the hourly chart (RSI + MA50) and the falling resistance line broken upwards again, it no longer has any importance and will take it from the chart. Next target point can now turn back to 558. Use short stop under 530, tomorrow USA presidential elections, a lot of movement is not excluded

TA-Vision

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