 | Today's session is a great proof, that the market does not care what I think and just discounts everything. It took 54 days for the WIG20 to regain the strength and retest the july highs, which happened today. Although I was expecting the retest, because it had to be fueled by rising foreign indexes, that are now trading above their record levels, but several price patterns were constantly putting me in a state of concern (especially in a daily timeframe). You can see clearly now, that the market has rejected all of these stall/reversal patterns and rallied all the way up to the previous tops. Breaking through the 3900 level will indicate further increase in prices, so there is going to be a reason for going long. |
 | Now let's look at the intraday data, to get more detailed view of what was happening today. The market gapped up 15 points on the open and then pulled back to most recent high, which confirmed the 1-2-3 intraday bottom pattern (formed yesterday). After this confirmation, the rally started and as you can see, the market did not even look back, because there was so strong buying force. First it got passed through the 3780 area, which was the most crucial level of resistance until today, then rejected this possible bull trap, which I pointed out recently and finally broke through the 'derivatives expiration day' highs. Before breaking through 3850 level, the market formed a bullish flag pattern near the resistance and this is what I am looking forward to see in the upcoming days. It is a good time for a pullback after testing these highs, because the market would make another higher low and then allow the phase of accumulation to develop again, eventually pushing the price above the main resistance level. The following are the key resistance and support levels for the upcoming days:
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Tuesday, October 9, 2007
09/10/2007
Futures analysis
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