Friday, April 16, 2010

ALSI 60 minutes chart, as of April 16th, 2010


This morning I will review ALSI chart posted in “ALSI 60 minutes chart, as of April 13th, 2010”

As I said in that post ALSI was making double top with conformation around 26150 and target around 26550. In mean time we had false break/conformation with market going up and testing 26750 again, making it now triple top.

There is obvious triple negative divergences on RSI and Stochastic, that pointing to possible sell off. Conformation is again around 26150 with target again around 25550. To add to this is market action yesterday late afternoon when ALSI was trying hard to break above 26750 but without any success.

Pattern can be seen as sideways trading range with 600 points in it. So watch for break out. Ideally one would like to sell market as close to 26750 as possible but I guess market will gap down on opening. Also watch 26150 because there is very strong support there now and even if market goes down will probably be stop there.

Trade with trend!