- WE'RE JUST RANDOM SPECKS OF DUST IN A TORNADO TO THE MARKETS .......
- CHARTISTS MUST PUT ALL BIAS ASIDE AND LET THE CHARTS DO THE TALKING OR WE'LL SEE ONLY WHAT WE WANT TO SEE
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Monday, 14 June 2010

Rectangles and Resistance

Last week's rally took ES and a number of the USD currency pairs up through some key resistance points and we are close now to the top of the rectangle on ES with overhead resistance at 1102. The top trendline of the ES rising channel that I posted on Friday was tested hard overnight but has not been broken:


We are also at the top of a similar rectangle on GBPUSD. In the last two hours GBPUSD has broken through the top of it:


EURUSD has broken through to 1.225 overnight and as a result USD is breaking down from the recent rising channel. If we are to see a significant retracement in USD, I have marked in two rising trendlines likely to provide some support:


The real test this week, and possibly for today, is to see whether ES can break through the very strong overhead resistance at 1102. It probably won't do so at the first attempt, but the odds now favor breaking up through it in my view.

Biffermas posted at the weekend at slope about a number of longer term indicators swinging behind the bull side now. Everyone should at least be aware of these:

http://slopeofhope.com/2010/06/a-simple-longterm-trading-plan-by-biffermas.html

As for today, I'm expecting that we should see some retrscement today or tomorrow before any decisive break of 1102.

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