Monday, October 5, 2009

Grand Levels - 5030 Break Out Still Bias is Bearish

Hi,
Yes we did broke out on the upper side of full consolidation day but its hardly 50 points above the crucial lvl which suggests so far that 50 point filter should be placed for both side. Clearly on charts trading range was completely stalled and we consolidated again full day on 1st. Now too much consolidation in such short range makes this bull run a bit questionable and gives more fuel to the argument that rallies at the top are steeper. Again consolidation were with low volume and huge divergence in RSI clearly indicating weakness (see the chart).

In my opinion what we are witnessing is sort of steeper moves. Last two trading sessions at SGX again have given sub 5k lvls closing which can be turning points of this rally. Now it will be interesting to see if in the morning how low we can manage to open and how bulls will be reacting on any kind of gap down which is a quite a rare thing for a while.


Hope you loved reading it.
Happy Trading.

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