By Trend Recognition
| Stock Markets
| Dec 30, 2012 09:28AM GMT |
2606.46 Short-Term Trend:
Weak downtrend Outlook:
The market surprised us with a big decline last week and brought a signal that wave E might have ended already. The daily chart looks negative now and further weakness toward 2544 level can be expected. A sustained trading below there will virtually confirm the completion of the entire bull market from the Mar 2009 low.
Despite this bearish analysis, I am not ready to turn short yet. Why? - because the market is usually positive in the first few days of January. Based on the current pattern, I suspect that this year the market will fail to rise in the first few days. But I prefer to wait for more signals before turning fully bearish here. Strategy:
1405.66 Short-Term Trend:
The market moved below 1411 level last week and thus negated the series of higher highs and higher lows from the Nove 2012 low. And by doing that, it has signalled a negative reversal which most likely means wave E is complete. A close below 1400 will further confirm the bearish case here and will likely bring weakness toward 1343 level (November low). On the upside, only a rally back above 1430 will negate and will suggest one more rally toward 1454 and possibly to 1475 level... Strategy:
The hypothetical long from 1395 was stopped out at 1410 with 15 points profit. Stand aside.
Disclaimer: The services provided by Trend Recognition Ltd are intended for informational and educational purposes only. While a course of conduct regarding investments can be formulated from the presented analysis, at no time will Trend Recognition make specific recommendations for any specific person, and at no time may a reader, caller or viewer be justified in inferring that any such advice is intended. The service is not a recommendation to buy or sell securities or an offer to buy or sell securities. The publishers of Trend Recognition website are not brokers or registered investment advisors and are not acting in any way to influence the purchase or sale of any security and/or its derivatives. The data for information provided by this website is obtained from sources deemed reliable but is not guaranteed as to accuracy, or completeness. The use of Trend Recognition services is done so at your own risk. Trading and investing in any financial markets, including, but not limited to the stock market, options market, futures market, bond market, and/or the commodities market involves serious risk of loss, and in some cases, greater loss than the amount invested. You should not rely solely on the information provided on this site in trading. Use of this site is your agreement to assume full responsibility for any losses, and your acknowledgment that we do not guarantee any results or information provided in this site and that you acknowledge that you are forming an independent opinion based upon your own research and resources, and not on the information contained herein. Trend Recognition recommends that you do your own due diligence and research when considering placing any kind of transaction.
It is possible at this or subsequent date, the publishers of Trend Recognition may own, buy or sell the securities discussed therein or their derivatives. Trend Recognition or its publishers are not liable for any losses or damages, monetary or otherwise, that result from trading the securities and/or derivatives discussed within the Trend Recognition website. The publishers of the Trend Recognition recommend that anyone trading securities and/or derivatives should do so with caution and consult with an experienced broker and/or investment advisor before doing so. Past performance of Trend Recognition may not be indicative of future performance and does not guarantee future results.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.