Weekly Chart Review, November 15, 2009

Well that didn’t last long. After just two down trending weeks we are back to having an up trending price bar to examine. The positive reversal noted in the RSI last week had a projection up to 1098.66 which was filled. This means that the bull lives on; which was confirmed with a new rally high. We also broke through the TD Trend Factor target of 1079 and the TD Supply Line (down sloping dashed red line). Neither of these breaks were qualified but we will most likely open above both lines Monday morning fulfilling the qualification criterion. So where does that leave us?

To confirm the break of both lines on Monday will require (at least) follow through on Tuesday by means of a higher high. That is the challenge for the bulls as we start the new week. A failure on their part will leave us with failure at the TD Trend Factor target, continued bearish RSI/price divergence, and an open downside price projection of 987.51, which is below the critical monthly chart value of 1019.95. 987.51 also coincides with a 50% retracement of the move from the TDST support line.

If the bulls are successful then the door is open to continue the charge upwards. Perhaps 1145-95 and completion of a TD Combo (we are on bar #10 now)?

Tomorrow I will merge the daily chart work with this weekly chart posting since it's emphasis is on what happens Monday and Tuesday. Enjoy the rest of the weekend!