Friday, July 10, 2009

Play for Friday, July 10th

Yesterday we respected the black trendline in the chart below, and obviously stayed well within the current channel (in pink).

However, intraday momentum is currently mixed: looking south on shorter time frames and up on longer ones. Daily and weekly momentum is looking day, and the 7 day weighted moving average (which often acts are resistance/support) is at 4169.

There is a strong chance we might get a sell off at the open, but I'd keep a an open mind: as mentioned yesterday, a more significant retrace up could get us up to the 4230s-4250s.

I am maintaining my current trade, which is set up to stop at breakeven.


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