Banking on the Banks?

Friday:

 

Price's retested the prior high set on Thursday, hitting the 930 range two times, showing a possible double top. Although I stated is a possibility for a corrective move on Friday. Prices made a second attempt at the high creating the double top, but did consider that the top may extend until May 11^th. Here are my comments……

 

“The important ranges of 931 (930.21 actual High) with a violation there would see prices move two 940 range.”

 

Posted by Gannfann on May 08, 2009 at 09:07 AM

 

“I see a possible change occur on May 9 or May 11 near the price ranges of 931 or 941.”

 

Posted by Gannfann on May 07, 2009 at 09:24 AM

 

Today:

 

Prices reached a double top on Friday, hit my target and time, so we should see a corrective move begin to take place. Traders need to keep in mind that this corrective move may find support at prior bottoms since we still have a valid uptrend and we have not broken prior lows of the uptrend yet. I am starting to see significant divergence taking place on the 60 minute chart, so we could see a corrective move or the end of this move start to take place soon. From a technical analysis perspective, unless we have seen violations of the second prior low or break in the trend line. We cannot confirm yet that there has been a change in trend. From my analysis, I believe we have seen a change in trend, but I can only say that it may be on the short term until I can confirm absolutely through the violations of other indicators. If my analysis still holds true if we do not hold this range, we will see a corrective move break-in to exceed the 666 range. It is still critical that we have a violation of the prior lows but I do see that this move is still a bear counter rally. If we were to break the 930 range prices could extend to higher targets the high authority outlined and this move may extend until June 1^st.

 

 

Support / Resistance:

 

940-942 2^nd resistance

928-930 1^st resistance

908-910 1^st support

900-902 2^nd support

 

Notes:

 

Traders need to understand that this is not a conspiracy or manipulation taking place is just survival of those that have already over extended themselves during the prior breakdown of this market. It is natural, if you have huge trading positions to need to move out of those positions into more profitable ones and minimize risk. There are also traders that are very aware of retracement levels, especially major retracement levels, where we found significant support and a valid short-term uptrend to take advantage of. This basic technical analysis and just as it is predictable that prices will rally off major retracement's. It is also predictable that this move will exhaust itself as buyers exhaust their funds and news becomes more difficult to overlook. It is still my feeling that traders are moving out or liquidating positions into this move, in hopes of protecting their downside risk.

 

Gannfann