On Friday (10.07.2009) OSEBX closed at 261.59 down 2.3% from last trading day. Intraday high and low was 267.78 and 261.17. The last few weeks development has been dramatic with fall from a high of 310.85 (intraday). The actual fall seen lately has not come as a surprise and has been talked about both here on stocktradersbulletin.com and by others long before it actually occurred. This show to some degree what has been expected from Q2 and that we are in the middle of already. So what support and resistance levels are we facing now? On the downside 253 seems very strong and some time ago we talked about that this level could be the low level for the correction we are now seeing. We have not changed our mind about that yet and are still believing that 253 will be a strong support level. If this level fails 239/240 is the next to look for. On the upside 266 and 282 are the immediate levels to pay attention to. ADX has fallen substantially but are still showing relatively high numbers (22.16) and has began to rise again due to development of the negative trend seen lately. RSI are showing low values and what is negative is that we still see falling tops and falling bottoms. All in all it do look relatively negative but we choose to see this as a healthy correction in the market as a response to the strong rise seen earlier. We also see 253 as possible bottom for the correction.
Pivot points for tomorrow are PP = 263.52, S1 = 259.25, S2 = 256.90, R1 = 265.86, R2 = 270.13. An opening higher than PP tomorrow can be regarded as positive.
If you want to calculate pivot points for stocks that you follow, OSEBX or any other indexes you can do that with the Dukascopy pivot point calculator found here:
http://www.stocktradersbulletin.com/documents/financialcalendar.html (lower part of page).
Happy trading.
SB
