This morning I would like to review Top40 30 min chart from around 1st March till yesterday.
In my previous post “ALSI 60 minutes chart, as of April 13th, 2010” I pointed out that potential double top is developing on ALSI 60 minutes chart. Conformation level was around 26150 and that level was breached two days ago. Unfortunately if you we short market bounced back and next morning gaped up and run all day adding more than 500 points. On the end of the post I said “nothing is certain” and that is especially true if you try to take trades against main market trend.
Lesson that we all should learn from this is that if you nicely planed action fails you should revisit situation and adjust accordingly. Action that should happen yesterday was close short and go long. And that is exactly what we did with system that is published on twitter.
Let’s go back to Top40 30min chart now.
Currently Top40 is trading in nicely define up channel started on 8th March with one false break on 13th April. Top line of the channel is around 26700 and that is where we can expect Top40 to go today, maybe even in first hour of trading. That would mark new year to date high.
Few time I posted that levels around 25922 on end of the day base or around 26030 on intraday base are very important and that breach of them on upside is very bullish. From the chart one can clearly see that once green line around 26050 was broken acted twice as solid support. This is very nice example of change of polarity, once resistance becomes support and vice versa.
Conclusion is solid up trend on Top40 for last month and easy money is on upside so far.
Trade with trend!