Monday, January 2, 2012
Down trend still continuing...
Red PF is the major PF defining the trend and containing the downtrend till now.The price was supported at 4530 at the ML and has made a retracement , tested the Upper red ML parallel at 4800.The current move is again towards south .
Drawn a green Upsloping PF to estimate the support level for the downmove.The area marked in yellow would have been a good support area for an upmove to start, but price has moved further.
Drawing the dynamic Swing line from 4800 to latest low , with a parallel line through the previous minor swing high, today the price has moved past the Dynamic resistance line.The slope of the current Swing indicates the slowing down of the momentum ( price bars reached 76.4%R of the previous swing and are moving more along the UMLH and away from the ML) , with price probably trying to build a base / double bottom for an upmove.With the current position in the chart, price can move upto 4690 zone.From there two probable outcomes
1.Price moves towards 4800
2.Price is resisted at red UMLH at 4690 zone and moves down towards earlier low at 4530 and further below to retest the downsloping support line projected from earlier Lows.