This 2-hour chart spans back to the beginning of February and has 20- and 50-bar moving averages running through price. The bottom pane contains my volume-weighted MACD. As in previous charting examples, the price bars are painted red when MACD is negative and green when the indicator is positive.
The bounce in XLK from the early March lows reflects the recent strength in the technology sector. However, this particular ETF now appears to be stumbling on the short-term, intraday charts. Most of yesterday’s downside gap has been filled and XLK has encountered resistance today at the 20-bar moving average on this chart. As long as the yellow line remains below the blue line in my MACD indicator, price should work lower.
This second chart (also a 2-hour chart) displays our Time Segmented Volume (TSV) indicator in the center pane and a Worden Stochastic at the bottom. Admittedly, TSV remains positive having survived a test of the zero-line yesterday. However, over the past week the indicator has failed on a couple of attempts to move back up through its moving average. I think the real telltale sign here will be what gives first, the zero-line to the downside or the TSV moving average to the upside? Worden Stochastic has revealed a loss of momentum, as the indicator has moved down out of overbought territory and has now crossed down through the 50 level.