MATRIX Penny Stocks

[livermore4ever]

NDX: Red Alert (Technical Update)

Hello, before you read this Post, you should take a look at my NDX Technical Charts, in order to understand my Analysis:

http://globalspeculators.com/trading_futures/index.php?topic=18.0

Yesterday, the NDX has broken it’s trading channel, making a first selling signal…
Today’s session has begun like a «blood bath», with a major gap down and giving new year lows to the NDX.

Analyzing the Channel pattern, we can calculate a primary price target projection of 1.245, based on the traditional «break zone minus range amplitude».
This price target is valid for a 5 month period (the same has the pattern)

For the short term, we can consider 3 main resistances:
1.360 (The last «physical» relative low)
1.370 (The main reaction zone – yellow on the chart)
1.380 (The descending resistance zone – light blue on the chart)

Momentum is now oversold, but it doesn’t mean anything specific in technical terms… We can consider serious rebound possibilities, but it’s to early to make a move.

Traders on the short side of the market, should stay short for now, and use the 3 resistance levels as stop prices for their positions…
Traders on the long side… should be very careful, because the movement can be really strong this time, and the rising potential is not so high as it looks, specially if compared with the 5 month price target for the NDX index…

What you think about this analysis ?

Jesse Livermore