The Bulls finally made a push towards our 50.25 resistance and the reaction was as we feared as we shield away to finish the day on the back foot. So the Dow Theory is still in play with another lower peak. We now have to be vigilant if we slide back towards 40.50. The reaction from this long term support area as shown on the Monthly chart, should have been much greater which is becoming a real concern. However, we maintain a stance of being reluctant sellers down at these levels.
Day traders often go down through the time frames to find intra day resistance and support that do not show up on their daily charts. This can give good entry levels to add to a position or warn that the picture is changing. This works just as well going up to weekly charts to keep focus on the bigger picture.
We reached our objective at 50.25 or thereabouts. We have taken everything off the table now as we remain reluctant sellers at such low levels. Its also a winding down period with Christmas fast approaching.
