WHAT'S HAPPENING ON THE CHARTS

This week we look at several charts and provide some commentary on the likely range and direction of the market:
This first chart suggests support at $390, then $345. Then $280 (red and rising) which is looking increasingly likely to be tested, if we break clearly down through $390 and then $345 (as lines are splayed and thickened.) For a full view please click on the screen.




Then the second chart at right shows much the
same:

If we break down through green around $390












The third chart (to the left) shows strong support at $350/370 and rising rapidly. It also implies the market is not quite ready for a downtrend.






The fourth (weekly) chart shows very strong support at the $345-$375 levels; main resistance at yellow declining rapidly from $625.

Conclusion: If the market holds the $350/370/390 level (volume weighted daily average) after recent allocations announcements, then another move towards the higher end of the range $350-$450 is likely; possibly then testing $550-$600 for seasonal highs if inflows do not significantly exceed those of last year.

Furthermore the final chart above shows downward pressure of red at $420 and rapidly declining yellow towards mauve, reflecting liquidation of long term bullish positions as we reach the end of the 2009/10 water year.
Trendline support at$285 rising to $320, likely to be tested during season downtrend.