Weekly Report on ER - Mar 2nd to 6th '09

Our scenario last week proved right. We are now indeed about to test lows again and... no indication of a double bottom in sight.
Let's look at our charts more closely.


60 mins:
We don't have a tremendous selling pressure here at this time frame. Not to say that we're not bearish but we could see some support near or on the 375 level. No recovery in the near term, but we'll watch for a bounce as we get close to our anticipated support level.

Daily:
Same picture here. However the support level provided by MM stall level, Fib target and the strong 375 level may prove solid enough to exhaust sellers this week. Having said that, MTFS and Entropy do not show any indication of a forthcoming reversal.
Being so oversold, a short term bounce may occur. Prices should remain however constrained in this trading range until ready to break 437 again. Obviously, this is assuming that the [367-275] floor area does hold...

Weekly:
Almost depressing in a way... While we may still see some kind of a double bottom, it will at least take a few weeks to reverse the current bearish pattern. Selling pressure is no way as strong as the first bottom though.
Subconsciously one maybe does not want to imagine what would happen if 375 would break...

( posted Sunday 8 PM UK )