Another nice day today. It didn't drop to the 100MA/Support as I suggested yesterday. That put me off trading for a while as I was waiting for the drop( and the false breakout possiblility)...As it was we only got a 10 pt drop and a swift rise to 9482, and a drop to re-test 9424 for a double bottom. We then had 3 minor rallies, with consolidation inbetween, finding support at 9500 and 9525.High of the day was a healthy 9598....although I briefly saw 9603 on CMC.
The day ended up 81 or so.
The biggest surprise really was the fact that the bull wedge breakout happened straight away.It made me think initially that the break would be a fake, so I saw no point in risking entry.I would have been far happier had it pulled back to support first. The two higher lows at 9434 and 44 soon confirmed the break however.
Stochastics on 10 min have an extended overbought time suggesting we should now look for a pull back, probably to the breakout line at 9424 or the 100MA. RSI and CCI are showing negative divergence too,adding strength to the likely pullback. Furthermore, the last three major rallies have been 3 or400 points or so,follwed by a pullback.
The bull breakout target is in the range of 9767/9848 and I guess we will arrive there next week sometime, all being well, with the peak to peaks occuring approximately every 4/5 days.
The day ended up 81 or so.
The biggest surprise really was the fact that the bull wedge breakout happened straight away.It made me think initially that the break would be a fake, so I saw no point in risking entry.I would have been far happier had it pulled back to support first. The two higher lows at 9434 and 44 soon confirmed the break however.
Stochastics on 10 min have an extended overbought time suggesting we should now look for a pull back, probably to the breakout line at 9424 or the 100MA. RSI and CCI are showing negative divergence too,adding strength to the likely pullback. Furthermore, the last three major rallies have been 3 or400 points or so,follwed by a pullback.
The bull breakout target is in the range of 9767/9848 and I guess we will arrive there next week sometime, all being well, with the peak to peaks occuring approximately every 4/5 days.
