14.10.2011_Friday

WEEKLY CHART ANALYSIS

After a double bottom formation this week's candle is a wide range green bar / ZOOM bar crossing the blue median line.The sign of a positive rally to come.
In the chart I've drawn a upsloping green pitchfork after this weeks' higher close.The close , the highest in 9 weeks !Expect the 5200 resistance to be broken through and price to progress towards the targets of 5500-5550 zone in the next few weeks.
The Stoch indicator line is nearing a breakout of the Trendline and indicator is showing divergence at the double bottom, two positive signs for the upmove to commence.
In the New Pitchfork there are two tests of the Green Lower Median line in the previous two weeks , and coupled with the strong green bar today, Weekly trend is turned UP.

DAILY CHART ANALYSIS

The same pitchforks drawn on the daily chart.
Price has broken out of the parallel line drawn parallel to the pivots of the major previousdown swing.
Price has moved above 50 sma and above the red downsloping median line.
It is close to the previous resistances / double top but the momentum of the previous five day movement is expected to break this resistance.


60 min chart

Price moving up within the ascending Pitchfork , beyond the Median line, retracing and taking support at the green Median line , retesting it and closing close to the high for the day.
The momentum should take the prices up towards the 5180-5200 which is junction of Warning Lines/ Fib extension lines , Fib extension of 161.8% of previous swing.After that the next target is towards 5300 zone where there should be pullbacks/consolidation since it hits the downsloping red Upper median Line shown in chart.