Learning from last Week: (click here for the previous post)
- Following a 'Piercing Pattern', on the weekly chart, index saw lift off with two green weeks #W1.
- December's Candle was a Long Legged Doji #M1.
- Index found support at the weekly 5 EMA #W1, resistance was around the daily 50 SMA #D1.
- The critical 5 EMA and 13 SMA, poised to cross Bullishly or deflect bearishly on the Week Chart #W1.
- On the week charts the STS #W1, finally sees traction to clear the over sold zone.
Bears defend the Monthly 5 EMA #M1.
Looking Forward into this Week:
- Piercing Pattern (Study Links here, here or elsewhere) is active on the Medium Term Chart #W1.
- The Long Term Chart's focus moves to the Long Legged Doji (Study Links here, here or elsewhere) and its implications #M1.
Support & Resistance:
- Index has immediate support at the 50 SMA on the Day Chart #D1. Resistance is at 8040 (the 76.4% retrace of the 2011 low to the ATH) #W1.
- The Death Cross (50 and 200 SMA) is active D1.
- The MACD moves above the zero #D2.
Bulls aim to clear the Day Channel top, with a Higher High #D1.Bears hope to defend 8040.