SP 500 Technical Analysis 2012.04.05

Technically speaking, there are 2 strong support lines on S&P Index that will trigger the sell signal if they are breached.

On the mid-term (the last 4 months), the market evolved in a rising wedge (between T1 and T2) and the violet support line is also very important for the near term.

The sideways market in the last 5 weeks, created after a period of rising trend, shows the indecision of the investors and it could mean a distribution.

To sum up, there are high chances for an intermediate correction that could travel down to the 50% retracement level ($1,289) where the October highs were also created.   

Bank Of America - in a corrective move. 2012.04.05

The Bank of America shares price are in a corrective move for the past few weeks, retracing from the 50% fibonnacci level which acts as a resistance.

The declining volumes are typical for the corrective move of the market and the $8.90 area stands as a support for price. Moreover, the rising channel is framing the market and its limits are offering support and resistance for the price.

An eventual reverse in the support area will set the market for a bullish perspective, targeting the $11.07-$11.34 area. 

Previous analysis here: http://markettechnicalview.blogspot.com/2012/03/bank-of-america-is-set-for-rally.html

Crude Oil (WTI) Technical Analysis. 2012.01.27

The daily chart of the Crude Oil (WTI) shows a bullish trend in the last 6 months that has good chances to resume if the $104.00 support will hold.

The stochastic oscillator signaled good buying opportunities when it crossed below the oversold border (at 30) while is evolved for longer periods in the overbought areas, typical for a bullish trend.

The month of March formed a bearish channel that is, the most probable, a corrective move for the up-trend. However, if the stochastic oscillator is to be considered, than the buyers should initiate their positions when the fast %D brakes below the 30 level.

General Electric (GE) rising wedge. 2012.03.27

General Electric share prices are forming a rising wedge on the mid-term, between the T1 and T2 trend lines.

The main support stands in the $19.50 area and are representing the previous highs of July 2011 and of February 2012.

The bullish action can easily be sustained up to the $21.00 area, where the 2011 highs are plotted. However, the bearish divergence on the MACD indicator reflects the weakness of the trend and an eventual decline below the $19.50 support and below the T1 trend line will set the market for an intermediate correction that develop in a matter of months.

Bank Of America is set for a rally. 2012.03.12

Bank of America is trading within a range for a few weeks, between the $7.65 and $8.40 levels, developing a high probability scenario for a buy transaction.

The volume average of the sideways market and the strong support in the $7.65 area could trigger some signals for the bulls. Moreover, the only two sessions with high volumes were created on rising days that mean, the most probable, that buyers are loading.

The first target is very close (in the $8.40-$8.90 area) but if it will settle as a support than the target price will be set in the $10.13 and $11.00 areas.

Wal-Mart (WMT) correction in progress. 2012.03.08

As stated in the previous analysis, Wal-Mart price is in a corrective move after the sharp sell-off from the mid-February.

In the next days, the traders should pay attention at the price action in the resistance zone area ($60.00-$60.40). If there will occur a reversal scenario that there will be high chances of new lows in the future weeks.

On the mid-term, the stronger support is in the $55.00-$56.00 area.  

SP 500 Technical Analysis 2012.03.08

The S&P Index is set for a deeper correction after it broke below the lower limit of the channel.

The closest resistance is at the $1,359.2 and the bears are probably waiting for a better price to sell. The one thing that can keep the prices up will be the agreement of the private creditors over the Greek debts.

Technically speaking, the market seems to have started a broader correction that will find support in the Fibonacci retracements levels (1,336.6, 1,,310.9, 1,290.2, 1,269.5).