Monday, August 8, 2011

Tecnical it's heavy oversold but the sentiment is very negative...

The lower rating for the US generates fear and a lot of negative sentiment....The charts tell us to stay calm. The moving averages decreases very fast in the smaller frames ( look at 5/20 daily) BUT the 20 ma monthly is now support.
Of course, technical analyses don't work if panic dominates among the traders. Therefore, waiting for some positive signals before jumping on the "longtrain" is an option.

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