Monday, June 11, 2012

Market is closing the gap, but where is it heading?

Almost all major pairs, commodities and leading indexes opened the trading session with a nice gap. During the last trading hours, all gaps are being close one after another. The million dollar question now is where the market is heading after closing the gap. The index which delivered the best bearish signal was the Dow Jones, that’s why it is recommended to follow it to get some clues and hopefully spill some light. The Dow traded with a clear bearish divergence on the monthly chart. The index broke the critical support at 12700 points, and the brake triggered a strong down move. This level is now expected to become a resistance area and a clear evidence to that was delivered today. The fact that upper BB is at 12765 and 61.8% Fibonacci retracement is at 12785 will add additional pressure. Therefore, the Dow is highly expected to close the gap and to reach 12580.

No comments:

Post a Comment