Monday, July 12, 2010
Note
Last week, the market had traded down to a key level that I was watching for an oversold bounce to develop from. The market obliged and we had a nice size rally into the end of the week, closing at our highs of the week.
We are now short term overbought and approaching a key resistance level, in the form of a Fibonacci cluster made up of the 38% retracement of the big swing down and the 62% retracement of the shorter, more recent leg. this will likely come into play as a ceiling, requiring the market to build up some steam before busting through.
I still feel we have more upside to be seen on the intermedate-short term time zone. I do not believe we just straight crater from here, but I'm surely not going to go on my beliefs, and instead go with the market.
We are now short term overbought and approaching a key resistance level, in the form of a Fibonacci cluster made up of the 38% retracement of the big swing down and the 62% retracement of the shorter, more recent leg. this will likely come into play as a ceiling, requiring the market to build up some steam before busting through.
I still feel we have more upside to be seen on the intermedate-short term time zone. I do not believe we just straight crater from here, but I'm surely not going to go on my beliefs, and instead go with the market.
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