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Unformatted text preview: 470 level. To help clarify this, take a look at the daily chart on the XOI. Not only was the XOI facing stiff overhead along its former uptrend line and 50-day moving average, but the Index was also encountering resistance along its short-term downtrend line, which dates back to August's high. All three of these lines eventually crossed paths at the 470 level. As a result, it is no coincidence that the Index made an intraday high here last week and proceeded to reverse down. Also, not seen on the chart is the XOI's long-term downtrend line, which dates back to May's high and is now converging around the 475 level. Being the case, the XOI has significant resistance to overcome in the 460 to 480 range if prices are going to move higher in the near-term. However, the Index - up to this point - seems content on following its downtrend line lower, meaning that a test of support in the 430-440 is possible this upcoming week....
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- Spring '10
- Derivatives, xoi, AMEX Oil Index, significant trendline resistance