The market considers a bullish attack but still hesitating to do so. The previous bullish pattern was not confirmed. According to our rules, it is by now null and void. However, a new bullish pattern is developing and another BUY-IF alert is issued. It is the time to repeat the homework. Sounds tedious? Well, earning money is not easy. Keep an eye on futures trading and digest all related news, events, economic data and the outlook of the world stock markets prior to and during the confirmation week.
We are posting daily the current confirmation status, but, still you must check if one of the following three confirmation cases hold or not:
Does the week open with an upward gap? Your benchmark is the weekly opening price. If the prices stay over this benchmark, go long.
Does the week open at a level, equal to or below the previous week’s close? The benchmark is that closing price. If prices during the week stay over this benchmark, go long. In both of the above cases, avoid buying if the prices during the week start coming below the benchmark.
Check also the rare case in which the week opens with a big downward gap but the day ends with a long white candlestick though still closing below the previous week's close. Such activity confirms the bullish alert and the benchmark is the closing price of the long white candlestick.
If one of these confirmation criteria is not met, or in case of a black candlestick or doji, the BUY-IF alert remains valid (without confirmation) postponing the confirmation search to the following week. Any long black candlestick following a BUY-IF alert, on the other hand, makes the signal void and invalid.
We do not suggest any new short positions given the new bullish alert. The short sellers should consider covering their positions if the market confirms the BUY-IF signal. Otherwise, existing short positions should be carried.
