Mar 26, 2011

Weekly review / Седмичен преглед

The rebound of oversold levels lasted longer then expected and now is difficult to say which scenario will play out. I have shown them on the first two charts. I can show enough technical indications for both cases - bullish and bearish.

Looking with the eyes of a bull I would say that DJ has formed a channel and the correction is over.
Looking with the eyes of a bear I would say DJ has broken the trend line and retested it.

I say let us think like a trader and try to squeeze a gain. That means do not get emotional and keep an eye on both options.
Look at the third chart - I think this UP move needs a pause. The next move will be down and it will tell us which scenario is unfolding. I expect at least 50% correction.

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