Thursday, 12 April 2012

Triple tops Dow ( trade - June 2012 S&P 1371.50 stop 1372.50)

Carrying on from last weeks posts here is the current picture of the
assorted US stock Indices: The triple tops formation has played out well and in my opinion has run its course.

Now we need to see if we can take out the support at 12750 ( cash Dow) and 1355 ( June12 S&P). If we break these levels it will be a game changer. If we can find support here then the longer temr trend up may still be complete. Link 1 Link 2 Link 3
If not then we are looking at a possible retracement of significance and amedium term downtrend.
PS: The green horizontal arrow was the short entry break point from last week.

The trade is a high risk trade risking 1 pt (4 ticks) off the confluence of the light blue UMLP & reaction line and the possibility of price failure of making a new higher high plus the structure offered by the higher TF charts which show resistance from long term market structure ( forks and RL/WLs) at these precise levels.
plus a mini tripel tops formation pattern

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