Opps

T5 appears to different values on the depicted charts here. Can you explain plz? Thx Randy

thank you. 1 hr candle looking promising

I chart SOXX, but basically the same thing & yes, there is still & now even larger divergence (vs. the previous high) as the SOXX ekes out this marginal new high, as per my previous (yesterday’s) chart (included below with today’s updated chart).

Of course, remember that divergences, just like overbought & oversold, are conditions, not buy or sell signals. SOXX needs to clearly break & close below that minor uptrend line and/or put in a half-decent or better candlestick reversal pattern in order to trigger a sell signal at this time.

I think there is a decent chance, as this is pretty significant resistance on the futures. As of now, /NG has made a slight, what I call “momentum-fueled overshoot” of that resistance. As such, there is a decent chance it will drop back down to close on or around that level, quite likely followed by a pullback.

HOWEVER (and a big however), if you caught some of the recent videos, I had stated that I believe nat gas would soon enter that phase where it starts to “let loose”, meaning it can just plow through resistance levels, price targets, divergences, overbought readings, etc… as if they aren’t even there.

As such, active & nimble traders might opt to try & game a pullback while longer-term swing & trend traders might opt to sit tight with the appropriate stops in place, if holding out for any of the longer-term targets.