Dow closed at 11,824.69, down more than 200 points. The index is now very close to 11,508, the low established on Jan 22 2008.
The headlines are saying that the fall on Friday is due to credit woes and high oil prices. If you look at XLF (Select Sector SPDR-Financial), a fund that holds big financial names in US, the MACD chart is hinting on a potential reversal.
The XLF established a low of 22.13 on 11 Jun 08 and it reached a low of 21.86 on 20 Jun 08. However the MACD histogram has held above the low made on 11 Jun 08. This divergence is suggesting that a reversal is near.
However traders need to have strict discipline and stick to pre-defined stop losses in order to survive in this tough environment.
Happy trading!
The headlines are saying that the fall on Friday is due to credit woes and high oil prices. If you look at XLF (Select Sector SPDR-Financial), a fund that holds big financial names in US, the MACD chart is hinting on a potential reversal.
The XLF established a low of 22.13 on 11 Jun 08 and it reached a low of 21.86 on 20 Jun 08. However the MACD histogram has held above the low made on 11 Jun 08. This divergence is suggesting that a reversal is near.
However traders need to have strict discipline and stick to pre-defined stop losses in order to survive in this tough environment.
Happy trading!
1 comment:
I like your site.Let's exchange links.
Value Investing In KLSE:Value Investing Made Easy !
http://valueklse.blogspot.com
Please inform me once you have added my blog in your blog list.
You can choose to add your site in http://boyboycute.wordpress.com too.
Thanks.
Regards,
boyboycute@gmail.com
Post a Comment