In my humble opinion; even though MACD shows one as well, the divergence is really clear in RSI, this at a resistance! So I believe SET is looking for a bigger correction or in worse case scenario, a double top.
In the daily chart, I see a support revolving around 1390, let's hope that'll hold so we get the well needed correction and not a double top pattern, with a target below March lows, around the long-term support at 920-ish
Mooky_Mooky
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@giantDreams, That's something to manage, thank you so much. I am appreciated your opinion and time.
Mooky_Mooky
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@giantDreams, Do you still think it will correct?
SamuiTrader
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@Mooky_Mooky, Well, even if it should correct itself, so investors would get a healthy and slow bullish ride, I am not so sure anymore.
Even so, SET closed last week with an indecision candle, at a resistance area so tomorrow could close as an evening star pattern, and give us that correction. If it does, see if the strong support, old resistance (1450-1455) will be able to hold SET that should be heavy when investors stops are triggered.
If it will gap up tomorrow, then I see the next resistance at 1548 but the way the sentiment is right now...new all time highs???
If I go back about 17 years, then MACD was higher then it is now (my quick scan couldn't find another higher high) , if I copy that ride SET did then (same time of the year) , it is set up for new ATH (all time high).
RSI is showing why I normally do not use it, as it can stay high for a long time and if I do it is to find quick intraday triggers.
Having said that, I do not like the Eiffel Tower it's building up now, from a technical standpoint (of course amazing being in them, if has a plan to get stopped out with a nice profit) since the fall is often strong and if fib.50 doesn't hold most times the price goes back to where it started the ride from but beforehand it is impossible to know where the top will be at....again; ATH???
Mooky_Mooky
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@giantDreams, Thank you for your analysis, I am appreciated your work!
SamuiTrader
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I agree with you Lukiros, to go past and hold for any longer time, the high of the last bullish run (1455), will be difficult and blowing a few more blows into bubble.
I do however, like the MACD as it shows strength.
I also like the RSI, I am not one of those who are scarred of values above, or around, 70 as it shows for strength! but it tells you to wait for what we got today, a pullback! so let's see if the next coming days will give SET a continuous pattern, to follow up north...and who knows, it might break above 1450-1500 and start to produce higher lows and higher highs.
Edit: as I see it, a pullback down to ema150 and/or 10th of Novembers lows, would be good for a Long play
Mooky_Mooky
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@giantDreams, Thank you for the Share, I like to see Overbought RSI (Above 80) then way more correction back, sometimes make the Bias after finish the state of correction. My Support line will be at 1371.
Lukiros
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without correction or not even side-way? I'm not sure SET could do that.
For me -if SET could go up higher than 1450, It's bubble.
-If SET doing double top pattern and then sideway-up. I'm okay with that.
Mooky_Mooky
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@Lukiros, Interesting to manage the trade!! Thanks for the opinion.
In my humble opinion; even though MACD shows one as well, the divergence is really clear in RSI, this at a resistance! So I believe SET is looking for a bigger correction or in worse case scenario, a double top.
In the daily chart, I see a support revolving around 1390, let's hope that'll hold so we get the well needed correction and not a double top pattern, with a target below March lows, around the long-term support at 920-ish