As I anticipated last week, 1070 proved to be a good support level. Yesterday morning market briefly touched 1070 then went up 10 points. The move continued today with another 13 points on the upside. Now I am waiting for the second part of my "prophecy" to be fulfilled, bounce up from 1070 but not above 1100 by the end of the week. Of course is not a prophecy (LOL) just looking at charts and seeing a good support level at 1070 and a good resistance level around 1100 based on "volume at price" indicator.
Daily DMI is switching back and forth worse than in November-December 2009, one more proof that this market is not actually trending but is trading in range frustrating both bulls and bears.On weekly charts DMI turned negative at the beginning of May and never went back in green. Long term player should keep an eye on this indicator as well as on SMA200.
Volume did pick up today giving bulls more hopes that the market is going up again.
On hourly chart it's worth mentioning that we still have a bearish EMA crossing but both EMA25 and EMA50 are now going up.
babaro
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Good thoughts... yes, the volume today does provide some hope to those bulls... and we all know how much they needed some kind of ray of sunshine. The real test will be on a weekly level I think. Oh, and I'm looking forward to your prophecy :)
ReplyDeleteAbsolutely, bulls would be even happier to see this week up on a higher volume than last week.
ReplyDelete