Have we seen the bottom?
I am a little surprised on where the market is at the moment. I initially thought, we had a fair way to go further down and yet it seems that big Ben had his way on the Fed intervention. On a technical analysis, it seems that the markets had bounced off with a rally on the way up. Here’s where the markets are at the moment.
This is the 10 year chart of the S&P as of the 04th April 2008.
It showed a bounce off the support level at 1,312 and rallied up from there. It now seemed to consolidate around the 1,370 mark and will more likely consolidate around the 1,388 resistance level.
This is the 10 year chart for the UK 100 as of today the 04th April 2008.
This too had a rally from hitting the support at 5,568.5 and opened and closed higher in the last 5 days. It now seemed to be heading in the resistance level of 5,970.
This is the 10 year chart for the ASX 200 as of the 04th April 2008.
It also seemed to have hit the resistance line of January 2007 high at 5,677. This will be an interesting one to watch on Monday as it seemed to also be trading at or just under the resistance level of a bearish flag formation.
This is the 10 year chart of the Nikkei 225 index as of 04th April 2008.
This index surged through in the last 4 days of trading and have also gone past the resistance bearish flag of around 13,233 level and is on it’s way to test the resistance line of 13,716 - also the matching the early October 2005 level.
I think there are certainly some oversold stocks that are great for long term outlook, but I believe there are still some uncertainty in the current marketplace that one needs to place some disciplined approach to trading and investment.
What is your take on the current market?
