Sunday, October 30, 2011

The week ahead

Friday was the perfect day of consolidation for the bulls after the huge run-up the day before. The market bounced from close to MA(200), which is the immediate support level with 1300 being the next resistance level.


A few more sessions of consolidation or even a pullback would do the bulls no harm here. Let me rephrase that by saying that a few days of consolidation or a pullback is actually what is required now considering the overbought conditions the market currently finds itself (I will try and do a post on that later in the day). No harm done in either case as long as 1260 holds. So, the following are the important levels for next week:

Resistance: 1300
Support: MA(200), 1260

Take care and good luck!

3 comments:

SG said...

Hi PT, Nice post. Thanks for the resistance and support levels. What do you think about V at this point? Does it have upside potential?

positiontrader said...

Thanks SG!

Its a great looking chart. Like on a retest of 94 or break of 96.50. Check out the weekly and you will see what I mean!

positiontrader said...
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