Thursday, January 20, 2011
Top40 30minutes chart
Today market is dropping so far, it is 260 points down as of 10:00, so let’s take a look of 30 minutes J200 chart to see what is telling us.
From September 2009 nice trend developed and it was not penetrated even once. It was tested three times. As of 10:00 trend line is around 28700 or some 50 points away. It is easy to notice rising wedge with top line connecting 4-5 recent tops.
Target for wedge if trend line breaks is around 26600 (red line on chart) and that is exactly where last break out happened. Top40 was stuck between 26500/600 zone and it broke above in October, after that it tested break out point few times and continued higher.
Levels to watch on downside are 28200 and that was last major low. Bounce can come from around that level. If that is taken, then 27100 is next target.
Trade with trend!