Friday, March 21, 2008

Weekly Qs Update

Above is the 3LRs study of the Qs (see sidebar for chart indicator details if new to the blog). The daily chart continues to display a lateral consolidation pattern, with the Qs currently locked on the LR30 mean. The channel has served us well for the past 8 weeks, identifying the relatively narrow band of support and resistance that has characterized the Qs. . .although intraday volatility might lead you to believe otherwise.
The weekly chart is actually showing some positive momentum, with the Qs breaking through the upper band of the LR11 channel and looking like resistance at the 10WSMA could be next. The lower technical, including Moneystream, TSV, RSI and the MACD are all modestly up after Thursday's rally, and although Thursday's volume was suspiciously low, the weekly volume was above both the 8 and 20 day volume moving averages. . . so another argument in favor of the bulls.
The Qs continue to oscillate around the 20DSMA, although, as noted in the 3 LRS study above, there are technical signals that suggest a likely change of trend to the upside. Whether this is a longer term trend change, or merely a rally in an ongoing bear market remains to be seen. The AROON, which we rely on for longer term signals, remains non-committal.
The A50 showed considerable improvement this past week and is now bumping against short term resistance. The A50 can be considered a positive sign for continued Q gains as long as it holds above the 20DSMA. Next resistance level is the 200 day.
The A200 showed an even more dramatic reversal this week, bouncing off an almost zero level to touch the 20DSMA, which again has provided overhead resistance since last October. . . so a breakthrough to the upside should be considered a significant signal of strength.

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