Price Momentum: Negative/Neutral – Significant bounce here. Possible sentiment shift in play. No new positions.
Support (Daily Chart) – 8350 to 8600 area. If price pulls back, look for buy signals in this area only.
Resistance (Daily Chart) – 8800 – 8900 area. 200 day expoential moving average up here. Wait for short signals. No signs of selling yet.
Chatroom: Real-time analysis, charts, trades. Click here. PW: and654
In my previous post I wrote, “Wait for a bounce.” Well we got a bounce all right. Obviously it is news driven. Focus on the technicals. The price went from a support to the major resistance in 5 days. I will be looking for signs of selling up here for a possible short. In order to go long, I need to see price retrace back to the 8350-8600 area. If it holds, I will look into buying some call options to ride the continuation upward. If I short at the resistance up here, I will buy some puts, and not expect a huge move. Momentum is now neutral which means it may be turning positive. For a daily play by play, join us in our chatroom. Click here. PW: and654. Steve.
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