Daily Form July 23, 2009

Detecting Profitable Patterns For Active Traders

Successful trading without having to be right about the underlying market direction

THURSDAY JULY 23, 2009       03:02 ET

The weekly chart of the Nasdaq 100 index shows a coincidence occurring at the 1610 level between the 200 week EMA and the 50% retracement move from the October 2007 high and the low seen in October 2008 which was almost echoed in March.
Overall the resilience of equities continues to suggest that the bulls are prevailing against the sceptics but there are still some key hurdles to be confronted by several laggard indices.
The big Nasdaq stocks have clearly been the place to be during the most recently rally and the index has moved by more than 10% since July 13th.

The Dow Jones Industrials has pierced beyond the 200 day EMA and now faces the challenge of superseding its highest close in 2009 registered in early January.

The FTSE index reveals a similar configuration to that seen on the DJIA chart with a move through the 200 day EMA and the next target being the early January 2009 high.

The Hang Seng Index surged forward again in Thursday’s trading after Wednesday’s setback and as previously discussed the 50% retracement of key swing levels suggests that a 213000 level is attainable on this index in the foreseeable future.
A lot of macro funds that have been expanding their commitments in the Asian markets are being handsomely rewarded at present and my hunch is that there are signs that the Hong Kong market is getting a little overdone, as it is prone to do, so the target just mentioned could be considered as a possible exit point for some who are sitting on some very substantial gains.


The patterns identified below should be considered as indicative of eventual price direction in forthcoming trading sessions.
None of these setups should be seen as specifically opportune for the current trading session.
For a more comprehensive listing of price formations detected by our pattern recognition algorithms please visit TradeWithForm

HUM  Humana Inc.  

I commented in Monday's session that Humana (HUM) could meet resistance after the pullback channel moved back to moving average resistance and the chart suggests than entry opportunity on the short side could be near at hand.

WYNN  Wynn Resorts Limited  

WYNN Resorts is approaching possible resistance from the 200 day EMA which is just above yesterday's close and in this barrier in early May proved impenetrable.