Saturday, December 09, 2006

SIAL Analysis for 12.09.2006

Monthly chart shows strong uptrend in place. Look for signs of exuberant buying higher and then look for signs of weakness for the reversal.

Weekly chart shows that sellers were overcome by buyers last week, with a gap up and strong close.

Panic selling led to gap down to the $68.21 area where buyers came back strongly, taking stock to new highs. Initial upside target is the 1.27 fib level of $80.00. Watch for upside continuation next week.

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