Thursday, March 15, 2012

Drop and correction

Just like the drop and correction from the first week of March (9.25 - 8.50 - 8.84), in the recent 1.5 weeks the price behaved very similarly (8.84 - 7.65 - 8.25). Yesterday's attack to break above 8.25 - 8.30 and attack 8.39 (next Fibonacci level) failed, but this morning it is continued (although on small volume).

Given the fact that we are approaching the upper band of the channel, in which I see the price moving (also upper Bollinger band) the upside potential can be limited. Althoug to confirm the come back of bears we need new lower low and breaking below 8.00 and 7.93. Please also compare that the volume on red candles is much higher than that on green candles, indicating the upside momentum is slowing down.

We are now @ 8.11 which is a Fibonacci level. Another Fibonacci level @ 7.93 which gave support this morning.

Even the positive vote (non-legislative) by EU politicians on the ‘set-aside’ didn’t causes any reaction on the market.

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