Anyone for Calamari? (Springheel_Jack)
TUESDAY, 25 JANUARY 2011
Lots of charts today as it has been very interesting overnight. First though I saw a lovely chart yesterday which I thought I'd share with everyone and it is the daily chart for everyone's favorite vampire squid Goldman Sachs.
It's a beauty, a failure at long term resistance, a broken rising wedge and negative divergence on RSI and MACD. Furthermore there's a broadening descending wedge in red dotted red line that suggests that the next serious downswing may see GS break 100. Strong resistance is slightly below $175 so the risk/reward on the trade looks pretty good, and they may in any case rise with the market over the rest of the week to a better entry level:
Everyone knew what was going to happen next at the close yesterday at the high, after the breaks of declining resistance on ES and NQ, but the very bullish short term scenario didn't deliver overnight and looks unlikely to deliver today. The rot set in first with copper, which broke the strong recent (wedge) support trendline and then gave up most of the gains in recent days overnight. A break of 422 should take copper to 415 if we see that:
It's a beauty, a failure at long term resistance, a broken rising wedge and negative divergence on RSI and MACD. Furthermore there's a broadening descending wedge in red dotted red line that suggests that the next serious downswing may see GS break 100. Strong resistance is slightly below $175 so the risk/reward on the trade looks pretty good, and they may in any case rise with the market over the rest of the week to a better entry level:
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