Long term basis: Yearly bearish divergence with our stochastic and MACD => 500 as a first target

On a yearly basis, the status for our MACD is a bearish divergence. Furthermore, our MACD and stochastic are overbought at the same period: a sharp decline is expected. Below MY, a collapse could develop and amplify. 666, 500 and LY are our next supports.

On a quarterly basis, a bearish A type crossover is in progress with our 7 / 23 quarters moving averages (a bearish no-crossover is not ruled out in 2011). MQ acts as a resistance. A bullish no-crossover is in progress with our stochastic. As long as MQ / UM proves to be a resistance, LQ could be a target.

On a monthly basis, Bollinger bands spread is wide. The status for our 7 / 23 months moving could be a bullish no-crossover by the end of 2010. A bullish no-crossover is the status for our MACD. UM is our main target.

Idea: not bullish as long as MQ proves to be a resistance

Bet: towards MM if PM proves to be a resistance.

R = PM (1105.2), UM (1253), +;    S = MM (1040), LM (827), 666 (current low), 500, LY (277)

 

Medium term: UW / LW spread is thin

On a weekly basis, UW and LW are flat. The status for our 7 / 23 weeks moving averages is a bullish A type crossover. The status in progress for our stochastic is a bullish no-crossover. MW could be our first objective.

Idea: our stochastic could be overbought

Bet: not bearish as long as MW = support

 

R = UD (1160);    S= MW (1092)

 

Short term: toppish

On a daily basis, as long as M23 is up, a decline could be only a technical decline. Below MD, LD is our next objective.

Idea: decline below PD

Bet: choppy without main trend (due to UD / LD spread).

 

R = UD (1160);                   S= PD (1136), MD (1126), LD (1092)

 

Conclusion:  recovery in progress (easier to be long with gold)