Thursday, August 28, 2008

Jumped in the water

As anticipated we traded towards the top at 1282 and actually gained a few more points as well to a final top of the day at 1285. Here is where I would have expected a much stronger sell off, instead of kept our gains and closed at 1282 and above the 50dma of 1277. We have been trying to break free of the 50dma but have not been able to do so. Having closed this high is a good sign for the bulls and a bad sign for me - I entered quite a large short position yesterday with what I consider a great entry point.

We should sell off stronger today as we are running out of steam. Having closed so high and having reached 1285 brings us ever closer to the 1292 mark that cannot be ignored. From a technical side we are right along the 1x8 Gann Fan taken from 1312 top - a point we have not been able to break decisivly, a break here could lead us higher again.

Time and Price
3rd high 1300-1302
2nd high 1292
1st high 1285
open/close 1282
1st low 1276
2nd low 1266
rd low 1262

I am giving a bit of a wider range today. We are still maintaining ourselves in the same range and will break soon. Watch for action around the top today and watch how strong we sell off.

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