Alcoa (AA) - Testing mid-term support. 2012.05.18

The price of Alcoa shares reached the main long term support of $8.48 which was tested twice in the past 9 months.

The Elliott Wave analysis of the previous bear market (since April 2011) indicated a corrective wave that probably started in late December 2011. As it looks in present, the corrective wave could develop into an expanding flat pattern. This means that the current swing down should reverse somewhere below the active support ($8.48) and should rally towards the February local high, in the $10.80 area.

The increase in volumes in the past few days could symbolize the beginning of an accumulation.   

S&P 500 Analysis. 2012.05.18

This is the daily chart of the S&P 500 Index which shows the small distance until the H&S target at $1,292.

The previous analysis starting from early April suggested a bear correction high probability in spite of good earnings results but the brake and retest of the neck line (the purple trend line) from last week set a clear target zone in the $1,292 area (http://en.goldring.ro/analysis_details.php?analyse_id=2585).

The German DAX index recovered today some of the lost territory of last night and this could improve the market sentiment for the US session. However, the $1,292 still stands as a target for the short term.

       

The Crude Oil (WTI) price continues in the intermediate correction and reached now the strong support zone between the $90.00 and $92.00 levels.

The area of support is given by both long term and mid-term clues, especially Fibonacci levels and previous local highs and lows.

The mentioned support area could be a reversal zone for the next weeks but we need confirmation to look for a buy opportunity. In case of reversal in this area, the target will be in the $75.50 area. 

3M Co (MMM) - Reached the target area. 2012.05.16

The 3M shares price almost reached the $85.00 target set in the previous analysis of last Tuesday (http://markettechnicalview.blogspot.com/2012/05/3m-co-mmm-strong-resistance-in-9000.html) .

The $85.00 level could be interesting for a few bulls but given the fact that the $90.00 resistance proved that the bears are in control, the chances are, on the mid-term, that the current support will be broken.

If this scenario will turn out right than the next target on the down side will be in the $80.00 area.