What is it about the 4852 level that the market has closed there 3 times in the past five days?
We understand it as the composite HVN and on friday at the close as the market drove up higher, I was adamant that value was not traveling with price and that break above 4852 would not materialize.
These were my words from the weekend post – http://www.vtrender.com/content/profile-check-monday
As can be seen in Fridays' profile the value and the closing are far apart which to me means that the late buyers did not enjoy value or are not of the institutional kind and the event of a move down can be forced to liquidate rather quickly.
Should that not happen we will see a movement of price towards value and a potential meet up of price and value can happen again at the previous high volume node of 4852 marked in the chart above.
Should it continue above immediate target remains 4939.
Here'as the updated chart
Well the market got to 4939 first before 4852 and has nixed the argument just a bit for me here.
Needles to say we are at an important juncture and 4852 and 4939 will be important for our bias.heading into the next few sessions.Surely the seller is back below 4852, but if it stays above then the march to 4939 will have more confident buyers this time around.