Today we'll analyze the Stock SKF for online market trading,
Technical indicators to notice:
1- Last bullish trend was from 116.61$ (03/18/08) to 120.49$ (03/19/08) a 3.88$ move
2- The current bearish trend started from 120.49$ at 03/19/08 and is currently trading at 106.66$.
3- According to ADX, the trend is currently strong bearish,which is becoming weaker.furthermore, the ADX location between DMI+ and DMI- is hinting on a strong move ahead. the stock is very volatile at this point.
Short term chart patterns :
4- The Stock was resisted by a resistance line, identified by two points: 120.49 and 137.52, and is currently resisting at 111.975.
Mid term chart patterns :
5- The Stock formed a 35.33$ height triangle which was broken down at 116.61 in higher than usual volume, target of the pattern is 81.28.
Long term chart patterns :
6- The Stock formed a 47.85$ height triangle which was broken down at 116.61 in higher than usual volume, target of the pattern is 68.76.
Conclusion:
SKF was trading in a strong bearish wave, which is becoming weaker .
Technical indicators and chart patterns show highly volatile movements favoriting bearish direction,
recommend hedging long positions or entering short position or bearish spread options strategy , because of the high expected future volatility, consider constructing symmetrical options strategies for buying volatility through strangles or straddles.
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Resistance Levels: 108.29, 109.92, 111.94, 111.97, 113.12, 113.57, 115.21, 120.49, 130.65, 136.24.
Support Levels: 81.28,.
Friday, March 21, 2008
UltraShort Financials ProShares (SKF) Technical Analysis
That's all for today ... thanks for reading the post,
come back soon for more updates,
use the search to lookup for more interesting stocks you might be interested in,
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enjoy your online market trading!!
have a nice day,
Shadi
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