Wednesday, 2 May 2012

12pm update - mini H/S forming?

The downside momentum was not enough to decisively break under the recent 1394 low. So,..up we go again.
Looking at the hourly cycle, are we setting up a mini head/shoulders formation? To confirm it, first we need a fail/rollover at the 1405/10 level...and then a swift move to break <1394. Its something to watch for as the day develops, and into Thursday. The RS - if that's what it will be, might take until late Thursday to fully form, and that would set up the major snap/fall under 1394 this Friday -when the big jobs data is released.


From a MACD cycle perspective, we are already very low, and due a few hours to the upside.

Best guess right now...a move back to 1405/07...forming a RS, before a second attempt to break 1394, more likely tomorrow.

More later, its time for lunch!