MG, Re: Diamonds
My best guess of the near-term downside support is 10,685. I've drawn trend lines all over the daily and weekly charts and the line I like best connects the daily dots on 5/20, 6/7, and 6/18 as resistance and 9/2 and some other dates as support. In addition, I show one of four weekly trend lines in this area.
If 10,685 were to break, I agree that down is a ways below. I show a lower weekly trend line at 10,050, which I also have as the 50 week EMA.
The real problem is that the sideways movement since April has us below the lower trend line on the monthly chart that was established in the up trend since early 1995. It also broke the lower trend line since last September and we now have some heavy resistance about 11,150. I show near term resistance about 10,920, which corresponds with your +/- 10,950. Seems that it is probably not healthy to break monthly trend lines.
Just a View from the Swamp
TB
|
