Thursday, May 20, 2010
Top 40 60 minutes chart
Just as I am typing this Top40 is breaking support around 23450 and is going for the next one which is in the 22900-23100 region (double red horizontal line).
If we look back, Top40 was trading in nice up channel (blue lines) from March 2009 till just few weeks ago. It broke it on May 5th then retested it on May 13th and from there on it is just downslide. Target for that breakout is around 21200 and that is exactly 50% Fibonacci retracement level drawn between low of March 2009 and high of April 2010.
To me, more weakness is expected, but watch 22900-23100 as possible support and bounce. If that level is broken, than Top40 will get to 21200 in no time.
Trade with trend!