1.) As price approaches the 5850 support, we expect that sustained selling is necessary to break this support level.
However, Premium Index does not reflect this. It goes slightly lower but stays rather flat.
Then, suddenly we see a significant 'pop' in PI, and then quickly increasing again, indicating that the trend has reversed for now.
2.) As price wicks into mid 6400s, we expect sustained buying is necessary to break this resistance level.
Premium Index does increase. Looks like there is enough buying to break resistance.
3.) Price consolidates and PI sharply decreases.
Since price hasn't reacted, one could take this as an indicator to sell, or to look in the near future for a place to sell.
The significant jump in PI suggests that the trend has reversed for now.
4.) The following sub-6400 tails are accompanied by an increase in PI, indicating some buying interest at/below that level.
5.) For the next two sections, price and PI diverge: price up, PI down.
6.) It dumps to 6265, then consolidates on that level while PI decreases.
7.) Another leg down to 6201. We expect that sustained selling is necessary to break this support level.
However, this is not indicated in the PI, which is stabilizing. PI is making its 'pop' in the current direction to print a local bottom before a price reversal.
8.) Buy.
However, Premium Index does not reflect this. It goes slightly lower but stays rather flat.
Then, suddenly we see a significant 'pop' in PI, and then quickly increasing again, indicating that the trend has reversed for now.
2.) As price wicks into mid 6400s, we expect sustained buying is necessary to break this resistance level.
Premium Index does increase. Looks like there is enough buying to break resistance.
3.) Price consolidates and PI sharply decreases.
Since price hasn't reacted, one could take this as an indicator to sell, or to look in the near future for a place to sell.
The significant jump in PI suggests that the trend has reversed for now.
4.) The following sub-6400 tails are accompanied by an increase in PI, indicating some buying interest at/below that level.
5.) For the next two sections, price and PI diverge: price up, PI down.
6.) It dumps to 6265, then consolidates on that level while PI decreases.
7.) Another leg down to 6201. We expect that sustained selling is necessary to break this support level.
However, this is not indicated in the PI, which is stabilizing. PI is making its 'pop' in the current direction to print a local bottom before a price reversal.
8.) Buy.