Friday, May 4, 2012

What May happen

The market lacked the momentum to push forward; 7.60-7.65 proved to be strong resistance plus lack of support from coal and power market took away the obvious buying interest from power companies.

Any long position should have been closed latest @ 7.35 - before the market lost the ground yesterday after breaking this level when the US market opened without optimism. Stop Loss were taken out here.

Further short signal was the break below 7.07 - recent support and double bottom level. At the moment market finds support @ 6.80 euro - which is the level from previous significant correction and a Fibonacci level (twice: 1. on a daily chart, 2. on a 1hr chart).

I imagined the market prices moving within 7.24 - 6.80 today, however we dont exclude further downside risk in the late afternoon - depending on the US market mood - we may see a sell-off again leading to pull back to at least 6.62 euro.

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