moo river watch--ftse 100

06:40am, 24th April, 2009

Weekly

We are hampered by the Para Sar red dots as well as the bollinger midline. Rsi is wavering just under the upperbank of a downstream moo river, with a possible M shape. Other momentum indicators are still bullish supportive with a bit more room upstairs as well. 4150 looks like the minimum bull target to be achieved today.

Daily

Yesterday's high at 4088 will be a formidable barrier for the morning session, particularly with an overnight gap at 4018 not closed yet. Supports are near 4000 and 3950/30 main, a breach of the latter is highly bearish. If 4000 can hold off the bear assaults early in the day, it will be a strong bullish day. Ultimately, bulls are targeting 4300 in this upstream moo river on daily, which might be achieved on 28th April, 2009, if not earlier.

Hourly

There is an upstream moo river there if you link up lows for the past three days.

RSI is stuck in the middle, having reached 70's yesterday, either double top up or come down for a full regurgitation at 30.

MACD is hitting the lowerbank with a bearish crossing.

Repulse is M shaped.

In fact, most momentum indicators are bearish, together with the longest row of red para sar dots on price.

Good luck, bulls and bears.

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Quotes of the day (which says to me, we will be in a trendtrading day):

"It's certainly not going to be a quiet session ... with UK GDP and retail sales data, U.S. durable goods orders and the G-7 finance ministers are convening too, so there's certainly scope for further meaningful direction to be seen but the slightest sign of panic in the UK could easily leave the 4,000 level looking vulnerable on the London index," said Matt Buckland, dealer at CMC Markets.

"STRESSED OUT

Near-term the key event for many investors is the public release on May 4 of a series of tests designed to see how 19 U.S. banks, including Bank of America, Citigroup and JPMorgan, would fare under more adverse economic conditions.
U.S. officials were expected on Friday to release the methodologies used in the tests.

The situation is precarious since results that are too positive would increase scepticism among investors, while really negative results could renew indiscriminate selling of financials and exacerbate market volatility."

""We're in the kind of environment now where everyone is looking to take profits, though the market's also unlikely to fall all that much either," said Katsuhiko Kodama, senior strategist at Toyo Securities."



(source:www.iii.co.uk)