Saturday, February 16, 2008

Industrial Sector Analysis for 02.17.2008


Monthly chart shows high was made in October 2007, where there has been nothing but selling and weakness ever since. January's trading activity found short term support of a key LIS and prior resistance at $32.50 area where - "old resistance becomes new support". Current month's trading has been two sided, with no hint as to any strength. No buy signal/pattern evident on this timeframe.

Weekly chart better shows the strength of the early buyers off the January 2008 low. However, they were soon met with sellers. Last week's trading activity resulted in the bulls regaining back some of the ground lost to the bears the week before. No clear buy signal/pattern evident on this timeframe. IF the bears manage to take it down to test the January low, THEN look for buy signal/pattern there to go long.

Daily chart shows a test of the current high at $38 area. Friday's trading activity saw the bears gap down the open. The bulls never quite made it to close the gap, resulting in a narrow range bar and indecision between the bulls and the bears. Look for weakness next week and for price to move to test the January low.

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