F fell from the 12.65 high (24 Oct 2011) to test the 10-month bear trendline support (former resistance off the 18.88/16.18/14.22 highs) which held. The subsequent rebound off the 9.75 low (25 Nov 2011) broke above the 5-week bear trendline (from 28 Oct/11//18 Nov highs 2011) to suggest that consolidation would continue. As the weekly trend/momentum studies remains bullish, there is scope for further strength towards the 12.65 range high (Resistance 1). Clearance above the latter would confirm a base in place and shift focus higher to 14.22 (Resistance 2) ahead of 16.18 (Resistance 3).
However, failure to clear 12.65 would delay bulls and reopens the key 9.75 support (Support 1). A downside break there would avert the upside and expose the 9.05 range low at 46.25 (04 Oct 2011) for a retest (Support 2). Further weakness below the latter would signal the end of the consolidation and initiate the next downleg towards 6.61.
Trading Indication:
Short-term: Buy at 10.00 or lower;
Target at 12.65 and higher;
Stop Loss at 9.80 (2.0%)
Long-term: Possibly sell higher
However, failure to clear 12.65 would delay bulls and reopens the key 9.75 support (Support 1). A downside break there would avert the upside and expose the 9.05 range low at 46.25 (04 Oct 2011) for a retest (Support 2). Further weakness below the latter would signal the end of the consolidation and initiate the next downleg towards 6.61.
Trading Indication:
Short-term: Buy at 10.00 or lower;
Target at 12.65 and higher;
Stop Loss at 9.80 (2.0%)
Long-term: Possibly sell higher
No comments:
Post a Comment