Sunday, September 26, 2010

S&P resistances

Heading into next week, the momentum is clearly with the bulls. I thought it would be useful to find out where the next resistance levels lie, so decided to do a multi time frame analysis of the S&P charts. Hopefully, these charts will also go on to show the readers who are new to technical analysis the importance of taking multiple time frames into account while charting.

Let's start with the 15 minute chart of S&P. It is clear that 1148.80 is the immediate resistance level. The market was rejected right here first on the 21st and then thrice on Friday.

Moving on to the daily chart, 1150.47, where the market was rejected multiple times in January and 1175, where the index was rejected in May, are the important resistance levels.

The weekly chart also turns out to be very interesting. The last run by the bulls met resistance right at the weekly MA(200). Watch out for the weekly MA(200) this time too!

Here is a watchlist of gold stocks that I like heading into next week.

Take care and good luck!

P.S:  Chart of the Day is now up.

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