Wednesday, May 13, 2009

05/13 RUT - Technical look 1h chart

I'm looking at the 1 hour chart looking for clues as to what is the next probable move for RUT. It broke the past up-trend and now I'm looking for possible "stopping points". I believe it is due to a retracement, Today's movement of 2 st. deviation is likely to leave people itching to take profits, and that could swing RUT back up to the 480 zone.

Now, if we don't even look back, that is not a good sign, it will indicate the bear is out and looking for food.

I'm attaching a few 1-hour chart for further discussion. I'm using the Mini futures, as they provide 24h trading and one could see what overnight sentiment was (if any).

First a "longer-term" view. Notice that the 475/480 price zone was the resistance to the previous up-movement, that in itself would be argument to expect it to be support as RUT comes back down.

Now I'll post a few charts with possible scenarios.

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