Wednesday, August 10, 2011

Opening Bell

There was a very volatile session yesterday night on Wall Street. Bernanke speech resulted in a buy the rumour sell the news type of price action that was followed by a big rally, DJI jumped more than 600 points from the intra day low. Carbon opened in the positive territory as the result of improving overall market sentiment.

We have two resistances ahead at 11.60 and at 12.20. We suggest to consider adding to the long position we posted yesterday when the price breaks above 11.60. Meanwhile the stop can be moved to 11.20.

Looking at the bigger picture, the 11.60 seems to be a strong resistance. We have a few hurdles ahead before turning into fully bullish. We have to have a higher high above 13.30 to become more positive on longer term.

1 comment:

  1. Question: What Does 'Buy the Rumor Sell the News' Mean?

    Answer: Buy the rumor, sell the news is something that happens in most markets, particularly financial. Sometimes traders trade based on what they believe will happen in a given economic report or event (the rumor). Once the event passes or the report is released (the news), they dump their positions and the market moves.