January 16, 2013
- First chart is the one hour time frame of ES which shows a contraction pattern.
- Breakout from the contraction pattern should violate the levels shown in the second chart for a bigger move to happen.
- Daily chart will show weakness only if price starts to trade below 20 Day SMA.
- APPLE SUPPORT LEVELS
- APPLE Testing 100 Week SMA. If 100 Week SMA does not hold price could fall to the multi year up trend line shown in the Second chart.
- Month chart also shows price nearing 38.2% Fib level which is near the up trend line shown in second chart confluence of support here may stop a bigger fall from happening.
- FACEBOOK BEARISH ENGULFING UPDATE
- Facebook correcting after the bearish engulfing pattern. Yesterday's attempted up move did not last long.
- Now immediate support levels for the current fall is the 38.2% Fib level as shown in the last chart. If the correction extends price could test the previous resistance levels of 28.75 or the rising 20 Day SMA before moving up again.
- RCOM Continue to move up above the trend line.
- Price breaking above the Golden ratio and the Weekly cloud These two levels need to be held on a closing basis to confirm breakout.
- Last chart shows negative divergence in daily chart. One has to play this with caution as divergences does not perform well when the stock or index is in a trending move.
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