11 November 2012

S&P500 : Weekly UpTrend Line Break

  • Weekly ESc1 uptrend line support last week at 1385. Closed week at 1376, first break below the UpTL.
  • Selling rallies the more sensible option from now, stop on weekly close back above 1385.
  • Still early days yet; would prefer to see a 2nd consecutive weekly downside break confirmation before strong commitment to the bear trade. Been burnt too many times before already. If this works, it is going to be a multi-week trade, so no rush.
  • Daily SHS top call is playing out nicely. 


Anonymous said...

We know interpreting charts is notoriously subjective. Having said that: you could draw a trendline from 1 June via late July which is broken on 15 October, closer to the top of the trend at 1422. That would be clearer on the daily chart. That timeframe would be more trade-able. - Pandu

Taichiseal said...

I almost never ever enter a trade based on a Trendline break alone. Does not work. Often you get TL breaks when trend is consolidating.