Since the completion of a SIMPLE MONTHLY BULLISH PIVOT POINT back in March, WHC did not look back. Power of a monthly pivot on display. I must point out that, last bar on the first Monthly chart is yet to be complete before I dive into the analysis.
Lets focus to the most recent price action behaviour of WHC. September had seen the largest volume spike since this late uptrend. Nothing wrong with seeing a good effort followed by a good result, a good thing in a trending market. What happens there after is my focus. How about penultimate bar (October) ? Almost equal volume and shortening of the up thrust. Does this tell me something ? Yes, it does. Control as well as commitment is still maintained, but buyers are less keen. I will not comment on the current month until it is complete, but what I will do is to lower my time frame and add couple of moving averages to my weekly chart as well. Why do I do this ? In order to gain more insights as to what may be unfolding after the spike in volume in the monthly. Climax of some sort perhaps on the horizon ?
Monthly with a 12 period SMA below.
Since the breakout above the dashed Blue resistance line there is NO WEEKLY BEARISH PIVOT POINT REVERSAL,NONE to date. What may happen, if I see one over the coming weeks ? I would expect a pullback/correction would be my best answer. If we focus on the last four bars of this weekly chart, WHC had been stuck in a mini trading range. Price Action will have to make a move, UP or DOWN. Which way ? I don’t know frankly, but I am may have an answer in the next few weeks. Is that volume spike in the current week that just ended, trying to tell us something ? I am watching the boundaries of the mini trading range and that of 10 period SMA for further clues.
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