Entering a Congestion Zone on Forex Pairs

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Entering a Congestion Zone on Forex Pairs

Post  harpal1980 on Wed Aug 19, 2009 2:39 am

After a devastating drop on Monday, the major stock indices bounced back during yesterday’s session closing with an average gain of 1.2%. The bounce occurred at the start of the session and followed through to the closing bell. Even though a higher session was expected, especially after such a drop, retailers helped to propel the market higher, as numerous companies released better than forecast results.

Even though Rival Lowe’s fell short of analysts estimates, Home Depot helped to restore confidence as it lifted its forecast for the year after reporting a lower loss than expected. The Large Retailer climbed throughout the session by 3.14%, helping the retail sector and the broader market to go higher.

From a broader perspective, the S&P500 found mild support during the session and retraced a fair proportion of Monday’s losses. As stated in previous reports, a pull back was expected, especially after a run up of over 15% throughout July. One can see on the following chart that unless the major index bounces back today, heading back into recent range, the 38.2% Fibonacci level could act as first support.

Read the full article at Dodjit.com


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