Tuesday, April 13, 2010
ALSI 60 minutes chart, as of April 13th, 2010
ALSI 60 minutes chart is shown above. There is an interesting development that I would like to point out.
As we can see, from the start of this contract (JUN2010) around mid March, ALSI ran from 25300 to 26750 where it stopped on April 6th, as well as it rejected that level yesterday. So, with that in mind we could say that there is double top (for now) formed around 26750. Conformation for double top is at 26150 (thick black line) and if broken, target would be all the way down at 25550-25600 (long black line). Also, this target for double top is around previous support from end of March.
Together with double top there are negative divergences on RSI and Stochastic indicators (red lines on two top inner windows). There is a trend line (around 26200) determining current uptrend and it is currently just above confirmation line for double top.
This ALSI chart is telling us that we could have potential correction of some 4% or approximately 1200 points from yesterday’s high, but as everything in this market, nothing is certain.
Trade with trend!