Sunday, June 29, 2008

Industrial Sector Update for 06.29.2008

Monthly chart shows huge selling pressure as the bears managed to claw back almost all the gains made by the bulls since the January 2008 low. Lower high possibly being made here. No buy signal/pattern evident on this timeframe. The October 2007 high was made with regular divergence. Look for a retracement of the whole move up off the October 2002 low.
Weekly chart shows an abc 3 wave pattern into .786 fib resistance, creating a bearish gartley butterfly pattern. Look for the current low at the $32.40 level to be tested and then broken as the bears take it down to lower lows.

Daily chart shows aggressive selling as the bears gapped down the price at the open of trading. Look for continued weakness and lower low to be made. Initial downside target is at the 1.27 fib level of $30.40 area.

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