Posted August 3, 2011 8:00 p.m. ET (10:00 a.m. AET) on Trading Diary.
After several tentative attempts, the ASX 200 broke through support at 4500, following Brazil into a primary down-trend. Wednesday’s follow-through below 4450 confirmed the signal. 21-Day Money Flow below zero indicates selling pressure. Expect retracement to test resistance at 4500, but target for the breakout is 4000*.
* Target calculations: 4500 – ( 5000 – 4500 ) = 4000
Thank you for your new format. I like the ability to look over recent posts to learn more about how different scenarios unfold. It is much better with expert commentary than just looking back over charts and not knowing why they have moved.