Divergence Flashing Reversal Warning in DIA?
Divergence in technical analysis is simply a separation between price action and various indicators or oscillators. Divergence however, should never be used as a stand alone tool. FlashPoint Trading Academy uses divergence to assist in our swing trade entries and exits.
FlashPoint entered a long in DIA back on January 17th at $141.23. Having noticed a divergence between DIA's price and RSI, Stoch and MACD, we've set a stop-on-close order right below the 10 day EMA to ensure we lock in current gains. Simultaneously, we will also execute a sell stop order to enter a new short position as well with our initial target set at $256.61. Further weakness in the underpinning of major markets could see an even larger move down to $247.58.
If you like our analysis, please be sure to follow us and hit the like button. We greatly appreciate your support here at FlashPoint Trading Academy!
FlashPoint entered a long in DIA back on January 17th at $141.23. Having noticed a divergence between DIA's price and RSI, Stoch and MACD, we've set a stop-on-close order right below the 10 day EMA to ensure we lock in current gains. Simultaneously, we will also execute a sell stop order to enter a new short position as well with our initial target set at $256.61. Further weakness in the underpinning of major markets could see an even larger move down to $247.58.
If you like our analysis, please be sure to follow us and hit the like button. We greatly appreciate your support here at FlashPoint Trading Academy!
Comment:
Weakening market internals have been masked by a few stocks leading the many. Looks like that is about to change. FlashPoint Trading Academy likes our short position here and is adding to it!
AlgoTrend Capital LLC