Long term basis: out of monthly short position?

On a yearly basis, the status for our stochastic is overbought.

On a quarterly basis, UQ could be flat next quarter. With this hypothesis, MQ could be a target. Otherwise, the rise in progress could be only a technical recovery. LQ is our main support. The dynamic for our 7 quarters moving average is strong and will increase for 2 periods or more. A bearish B type crossover is in progress with our 7 / 23 quarters moving averages. With a bearish non-crossover for our stochastic a collapse towards LQ is expected. Otherwise, a recovery towards MQ could develop.

On a monthly basis; a bearish parallel pattern is in progress as long as MM proves to be a resistance (end of period). With our 7 / 23 months moving averages, a bullish B type crossover or a bearish non-crossover will develop within 3 months. The status will give the trend for the full year 2010.

Idea: as long as MM proves to be a resistance, our main trend is bearish.

R = MM (3775, end of month), MQ (4544);    S = MW (3392), LW (2940), LQ (2780)

Medium term: higher

On a weekly basis, LW could stay flat. A bullish non-crossover is in progress with our 7 / 23 weeks moving averages. As long as the pattern for our 7 / 23 weeks moving averages is not a bearish A type crossover, a decline is only a technical correction.

Idea: LW is a strong support. 

R = MM (3775, end of month), MQ (4544);        S= MW (3392), LW (2940)

Short term: towards LD if MD fails as a support.

On a daily basis, LD is flat. A bullish non-crossover is the status for our 7 / 23 days moving averages. Our MACD is overbought. Below MD, LD is our main support.

Idea: as long as the status for our 7 / 23 days moving averages is not a bearish A type crossover, a decline is only a technical correction.

R = MM (3775, end of month), MQ (4544);       S= MD (3715), LD (3536)

Conclusion: on a long / medium term basis; as long as MM proves to be a resistance, the rise in progress is only a technical recovery.