Long term: collapse in progress
On a yearly basis, UY / LY spread is minimal. A bearish no-crossover is in progress for some periods with our 7 / 23 years moving averages. Our stochastic is overbought and the same status is expected for our MACD.
On a quarterly basis, Bollinger Bands spread is expending dramatically. The trend for our stochastic, MACD and 7 / 23 quarters moving averages is bearish. As long as our MACD is not oversold, the collapse in progress will continue or expend.
On a monthly basis, the status for our stochastic and 7 / 23 monthly moving averages is a bearish no-crossover. Next period, a bearish crossover PM / MM will occur with an increase of UM / LM spread. A new bearish parallel pattern will be in hand.
Idea: add short positions
Bet: yearly MACD will be overbought in early 2011
R = MW (1.3812); S = -, –, — (towards 1.000???)
Medium term: Bearish parallel pattern
On a weekly basis, a bearish parallel pattern is in progress.
Idea: use bearish parallel rules.
R = MW (1.3812); S = -, —
Short term: towards a bearish parallel qualification
On a daily basis, a bearish crossover PD / MD is expected with lower prices. A qualification into a bearish parallel pattern will be in hand.
Idea: add short position with a new bearish pattern
Bet: a bearish no-crossover for our daily stochastic will add pressure on prices
R = MD (1.3511); S= –
Conclusion: add new short position (weekly and monthly basis)