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ESZ11: Closing Comments

10/20/11

Closing Comments:

ESZ11:

Top formations are always this way, either a whip saw or a roller coaster ride for children, near the end of the formation; the roller coaster ride becomes X rated.

Now Term: until noon tomorrow

1213.25/50 is the immediate resistance and dicates an up move

1206.50 is the immediate support level, it’s a compression gap (30m)

a break either way is determined by the 30m chart

we failed to hold the support pivot at 1208.25

therefore a break to the upside is up to 1227.25/50

as such a break to the downside is a different story

immediately down to 1191.00; although one closing bar below 1198.50 (90m)

kicks in a large down move to 1170.00 or lower

as such the OAV at 1178.00 is a key level

currently we have a compression gap at 1208.25 (90m) of which we failed to close it on 2 separate attempts, therefore I’m marginally biased to an immediate move to the upside, unless we close the gap.

 

The Bigger picture: (1360m chart)

We closed above the support trendline at 1197.50 (Bullish) and we closed above the 2nd TP support pivot at 1208.50 (Bullish)

In addition todays dip bounced off of the 2nd TP support pivot at 1194.00 and failed to reach the 1st TP support pivot;

but the floating equalizer is at 1215.75; meaning we failed to trade above it (Bearish)

TP= top pattern within the developing Top formation

Floating equalizer is the  50% Fib. connected from one TP to TP

 

Top formations are a pain in the you know what….