The market sold off heavily at the end of last week, causing many to panic. When this happens it is important to keep a cool head and use technical analysis to try to understand if what we are seeing is a correction within a trend or something more.
The GoNoGo Trend is a blend of robust technical concepts that is color coded to illustrate the strength of a securities trend.
The top chart is the daily GoNoGo Trend, and we can see that the sell off, while causing the indicator to paint paler (weaker) blue “Go” bars, it nevertheless has remained in its “Go” trend.
The GoNoGo Oscillator, which is likewise a blend of accepted technical analysis momentum principles, has fallen and is flirting with breaking below the zero line. It should find support here in a healthy “Go” trend, so we will look to see if it can rally back above zero. If it cannot, and moves significantly below zero, that is more threatening to our trend.
The second chart, shows the GoNoGo chart applied to weekly data. We can see that the larger trend is also a “Go” and that in this case, the GoNoGo Oscillator is in positive territory.
Therefore the technical analysis suggests that the larger trend is still *bullish, and that we could look for buying opportunities that arise out of the market turmoil we saw last week. If the GoNoGo Oscillator on the daily chart is able to rally above zero into positive territory, then we would see that as a possible low risk entry into the larger “Go” trend.
The GoNoGo Trend is a blend of robust technical concepts that is color coded to illustrate the strength of a securities trend.
The top chart is the daily GoNoGo Trend, and we can see that the sell off, while causing the indicator to paint paler (weaker) blue “Go” bars, it nevertheless has remained in its “Go” trend.
The GoNoGo Oscillator, which is likewise a blend of accepted technical analysis momentum principles, has fallen and is flirting with breaking below the zero line. It should find support here in a healthy “Go” trend, so we will look to see if it can rally back above zero. If it cannot, and moves significantly below zero, that is more threatening to our trend.
The second chart, shows the GoNoGo chart applied to weekly data. We can see that the larger trend is also a “Go” and that in this case, the GoNoGo Oscillator is in positive territory.
Therefore the technical analysis suggests that the larger trend is still *bullish, and that we could look for buying opportunities that arise out of the market turmoil we saw last week. If the GoNoGo Oscillator on the daily chart is able to rally above zero into positive territory, then we would see that as a possible low risk entry into the larger “Go” trend.
