Wednesday 25 July 2012

Morning Updates - 25th July 2012

Morning Traders,

Alright another down day in the US. Dow closed down -104 and S&P closed down 12. We have housing data tonight so be on the look out for that. On the weekly chart, we are trading near the lower end of the consolidation pattern so lets see if we can break through that and if not, whether a bounce is in order.

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Alright back home. The support at 30 broke yesterday. This basically signifies that the up trend has been broken.

But we might not just fall through the floor just like that. What it means that the bull trend line will now become less steeper and less steeper until one day, the reversal come and the bull trend line is being replaced with a bear trend line.

The 20ema is at 24 so that would provide some measure of support. I would like to see how it opens and if price goes up, I want to see if resistance hold. If yes, then I would like to short if the momentum is still there.

For now, I think I will just sit on the sidelines and just watch price develops more and stick to day trading.

Here are your levels for today:

FKLI

Upper Resistance: 1630, 33, 36, 38
Lower Support: 1627, 24, 22, 19, 15

Cash Index

Upper Resistance: 1632, 35, 37, 40
Lower Support: 1629, 26, 24, 22, 20

Trade safe all!

Best Wishes,
Tech Trader

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