Our turnover index gave a buy signal on the 31st of January, telling us a ST upleg is probably on the agenda.

Nevertheless, our Advance decline Index (21days) continues to weaken, telling us the current uptrend (started in mid december) is running out of gasoline and is close to an end.

We can notice that our Sigma Trading Oscillator continues to weaken. We believe we will get a divergence between price and oscillator in the next upleg: higher high on price (blue line) but lower high on the oscillator (red line). This will be the signal that a top is in place.

Conclusion:

We believe we are close to a top on a short term basis, and we will use the next upleg for building a full short position.

Have a nice day,