Weekly Report (May 23-27, 2011)
We still believe that we are still in the downside correction within the motive wave which finished lately as shown in the above figure. However, if we look back to our previous reports, until this moment 96.60 level remain intact, the secondary image shows how price reacted and rejected at this level, and couldn't close a daily candle below it. Thus, a bullish candles formation was developed. The relative strength index is still neutral, while stochastic oscillators made a bearish crossover, however for the downside direction to be confirmed we need a daily closing below 96.60, therefore we remain neutral for our weekly report, and recommend following our daily reports to study the intraday price action
The trading range for this week is among the major support at91.00 and the major resistance at107.30.
The short term trend is to the downside with steady daily closing below 109.75 targeting 85.40.
|Recommendation||Based on the charts and explanations above our opinion is staying aside and observing trading for more confirmation may be appropriate for this week.|