Tuesday, January 26, 2010
A.) Prices broke the downward sloping trend line and
B.) Moved higher, with several upward gaps along the way.
This is a good example of why it's important to always know where support, resistance and trend lines are. Breaking a trendline is an important technical development that must be heeded.
A.) The 10 and the 20 day EMAs are moving higher and the 10 day EWA has crossed over the 20 day SMA. Prices are above all the EMAs.
A.) The MACD is moving higher, indicating momentum is on out side, but
B.) The A/D line has not increased, indicating we're not seeing an accumulation of shares. That means this might be a counter-trend rally.