Monday, January 3, 2011
Top40 end of the week charts
After some quiet period Alsi Trader will continue to publish regular updates and will try to progress further together.
Firstly, I would like to wish you Happy Trading in 2011 and to become best trader that you can be.
Let’s start 2011 with weekly and daily charts of Top40:
First chart is weekly and I’ve chosen it for one reason only - Last three years started with market dropping for 3-5 weeks in a row. I am not saying that this will happen again this year. As Mark Douglas says: ”Every moment is unique”, but I would choose to keep an eye on this curious development.
The second chart is daily Top40 chart and it points to extended market, with some visible negative divergences. Negative divergences are not trading signal by itself and certainly not confirming it is time to change trading side, but one must keep an eye on them.
If we continue with trend from previous years and if market goes for correction over first few weeks, levels to watch are 28400 (previous resistance now support paired with 20 exponential moving average around same level); trend line coupled with 50 exponential moving average that is around 27900 currently; further down 26500-26800 area.
On the upside, there are not many resistance levels all the way to all time high at 31393 or some 2640 points away. I have no doubts that Top40 will reach new boarders this year and if I can be brave with my prediction - It will happen in the first three months of the year.
Trade with trend