September 1, 2010

SPY Trading in a triangle

CHART - II
  • SPY is finding resistance at 110.
  • If the breakout from triangle does not happen soon, more the chances of hitting 106 level at the bottom of the triangle.
CHART - I
  • SPY daily chart is trading in a triangle formation.
  • If 105 level gives support then SPY may rally towards the top of the triangle formation.
  • So for this trade one can keep a small stop loss at 104 for a target of at least 110.
  • But the main criteria the trend line in which it has taken support now should be held.

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