Tuesday 11 May 2010
There is no compunction to be involved in the markets everyday, save for the
non-professionals who “feel” the need to catch every move each day. We have
talked about the parameters being established for a developing trading range,
and it would be a healthy process for the market to undergo at this stage.
You can see why the 1180 area is important as resistance for any rally. That
level acted as previous support, back in the old days when the market was
calmer and ranges were smaller. 1185 is also where supply took over in the
market, last Thursday, so watch HOW the market responds when/if price rallies
to this key level.
Initially, the 1136 area may offer some support on any breaks. It was the
Friday high, noted by the horizontal line just below current trading. Should that
give way, then we can expect a retest of the Thursday-Friday lows…not all at
once, but over a period of several trading days.
There is no edge to be had in trading either side of the market, for now. Up
46 points one day, down 13 points another day leaves a lot of room for error.
Wait for an edge.
