Wednesday, January 14, 2009
Click for a larger image
There are some incredibly important points on this graph
1.) Note that 92 (line 1) provided incredibly strong resistance to an upside move. As prices moved higher, the average volume also increased. Granted this was weaker volume because of end of the year trading, but an increase in volume should not be overlooked. But -- prices fell.
2.) Since being rebuffed at 92 prices have continued to move lower on increasing volume. Now prices are approaching line 2, another important technical level
3.) Prices have moved below all the SMAs
4.) The only good thing about this chart is the SMAs are bunched together in a tight range.