Tuesday 26 February 2008

Good morning (or may be...)

It seems that 213 is a very strong psychological barrier to cross either way, we've been there for quite long time... now we have on the daily TF:
1. 50% is a little bit above the 213
2. 50ema is a little above that
Both these lines show very strong resistance... It seems we'll not break them easily before having large scale retracement of 200-300 pips down first.

The QQE on the daily has touched the 50 line, the retracement from here will form the other leg of the triangle, besides, the 4H QQE is close to the overbought area which suggests that we'll go down...

Having said all that, I still see massive up rockets if we have a daily candle close above the 50% fib and the 50ema. If that scenario plays, we'll have a resistance in the 213sh area every 20-30 pips, just like mines field.

I'm out watching for the time being until I see a strong sign of where the market is going...