Thursday, September 11, 2008

Stage set for a bounce; GLD and Tech

While the intermediate and long term charts point towards further declines, in the short term there appears to be tradable bounce opportunities; chiefly in tech and Gold. Richard Lehman's charts show indices in the mid-range of downtrends. His chart for GLD has longside merit over an intermediate time frame:

What of Tech indices? On the daily time frame we have bullish harami crosses. In the Nasdaq there is an obvious support level around 2208 with upside targets of converged resistance and/or the 50-day MA:

With the Nasdaq 100 the descent is steeper so declining resistance would appear to be the more logical target than the 50-day MA:

All bets are off if the stop levels are taken out (especially on a closing basis)

Dr. Declan Fallon, Senior Market Technician, the free stock alerts, market alerts and stock charts website