Who Will Prevail? 07/01/2011
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Last night the Dow is up by 168.43 points or 1.36% due to easing concern from Greece and stronger US economic indicators. Although our index is getting overbought, this will probably push the price on Monday. However, %R is already at 100 level and RSI is nearing the overbought level. The price is also currently at the resistance of short term upward channel that will probably pull down the price to 4,300 level. Monday will very exciting.
The same thing is happening with MPI, at 3.72 closing price, it already touched the ceiling of the short term rising wedge. 3.72 to 3.77 is very critical range, since at this price, the long term down trend channel (which started last November) could be broken. MACD above the “0” with a positive divergence indicates a buy signal and RSI is still at a good level. If there will be a good momentum on Monday, I will be adding more position as preparation for the long term down trend reversal.