On the bounce here Friday morning we erased enough of the negative RSI and pushed us back into neutral territory. Not a clear sign for bigger and better, but at least it’s a start. If we can follow through with the momentum, we’ll expect to continue the rally and look for resistance at 8789, 8853 and 8982.
From there it’s about flipping the 9000 level and that could change the sentiment all together. We’ll be careful about turning around and watch for support to hold 8690, 8540 and 8412. The front spread has tightened a bit and we could end the month poking back above –60 to –58.
Techies, some Trekkies
- 200-Day MA 9388
- 100-Day MA 9088
- 13-Day MA 8691
- 8-Day MA 8756
- 14-Day RSI 49.82
The overnight trend was up and we see the10-minute chart on a mission to continue this rally. We like the trailing support line to hold the 8700 area. We have pushed past the pivot area at the 8750 level. This leaves a move to test channel resistance at 8800. We may have enough to push us past there and rethink this from the 60-minute chart. Here we are still in congestion and the first level of resistance will come at 8850. From here we target 9000 and then it’s time to find the new uptrend.
By Carl Larry