weekend charting 29-01-10, page-96

Someone asked earlier about ORD. Here's my take on it. I also hold ORD.

With regard to the blue pitchfork in the attached chart, the price has tested and retested the blue median line as a resistance level on 31 Dec and again in mid-Jan to break and close above it on the 19th. A retest of the blue median line (as support) on 25th saw a close above the line but it subsequently failed to hold. Price has now closed below the EMA 41 line and the EMA 8 line (red) looks set to cross down over the EMA 41 in the next trading session or two.

The shorter term green pitchfork had described the rise from 22 Dec very neatly via the channel between it's lower median line and the internal 0.618 Fibonacci line. Following last Monday's break out and down from that channel, it will be interesting to see whether or not the price finds any support from the light green 1.382 Fib line and climbs back towards the blue median line over the next week for another test of resistance. I suspect it will.

Short-term negatives: EMA 8 looks about to cross down over the EMA 41; the Stochastic has broken down below the previous support line and the MACD has just crossed down.

Conclusion: A move back to the blue median line (and further, to re-enter the upwards green pitchfork) will come, but some further weakness this week is highly likely to precede it. I would be prepared to increase my holding on a convincing bounce off the light green 1.382 Fib line on good volume over two sessions.

Regards,
Bones