Monday, January 24, 2011
Top40 30minutes chart for January 24th
Quick update for Top40 30minutes chart.
Rising wedge was broken on Thursday and break was retested on Friday and again this morning. Together with break 50 exponential moving average (blue line) was tested and proved to be a strong resistance. Market dived after initial strength this morning and it is currently some 350 points off the high.
There is another less sloped trend line on the chart, exactly where Top40 got stopped. Bellow that line is horizontal support around 28200 and if that is broken we will have very little support all the way down to 27100.
Dow theory is still pointing towards bull run, market made only lower high with no lower low yet. That will happen if 28415 is taken.
On the upside watch for close above 50 exponential moving average and new higher high above 28835.
Trade with trend!