Tuesday, March 2, 2010

Some charts to watch out for tomorrow.

For why I am expecting a pullback in the short term and the precautions one should take while going  long, please see here. That said, I think a pullback or a rest over here is good for the bulls and this is still a buy on dips market, at least till this stops working. Why fight the tape?

GLD - nice move up today on decent volume. I pointed out 110 as the important level last week and it took that out nicely today. This level should now act as support.

HUI - Gold miners. Weak close but a bullish day nonetheless. Took out MA(50) and an important resistance level today. Again, these levels should act as support now.

USO - The line should be in red as its still resistance. Bulls tried but were not able to take over it. Weak close. Keep an eye on this level.

ARM - Nice low volume pullback today. A buy at new highs.

DLTR - Nice consolidation. A buy if it breaks last week's highs.

NFP -  Chart of the day. Breakout on high volume. Love the bullish volume pattern since the original breakout. Looking good to run some more.

Take care and good luck tomorrow!

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