On Friday (22.05.2009) OSEBX closed at 283.88 down 2.2% from last trading day. Intraday high and low was 290.14 and 282.05. Looking at the chart we see that a resistance level at 291.79 has formed and we also see what could be a beginning double top pattern. It is too early to conclude this yet but we should be aware of it. As we know a double top pattern is a reversal pattern where according to theory the potential fall will here be defined from ~290 - ~267 = 23. 267 - 23 = 244. So if this pattern is completed we could theoretically see a fall down to about 244 for OSEBX. Support levels to pay attention to the coming days are 266, 253 and 242. +DI is showing lower tops also indicating a possible downturn. We also find falling tops in the RSI chart and this is an indication of negative times to come. Actually what we see is a divergence between the higher tops seen for OSEBX while the coinciding tops in RSI is getting lower. When RSI values are as high as now the divergence is a strong indication that the market could fall the days to come. For this not to happen we would like to see RSI rising above its last top and only then can we start talking about a continuation of the upward trend seen lately. Pivot points for tomorrow are PP = 285.35, S1 = 280.57, S2 = 277.26, R1 = 288.66, R2 = 293.44. 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
