16 Apr 2009

GU.

Fundamental:
Dow was up a 100 points last night. The Fed said there are signs of bottoming. The market has been running up some 25%.

Tonight with "Housing starts" and "unemployment claims" at SGT 2030hrs, it will show whether a confimation of the health of the economy. This will determine whether GU will climb higher or again do some consolidation.

Europe on the other side is battered with bad news from UBS as compare to the relative good news from the US major banks. This give GU some injection for weakening.

Oil on the other side has ended below 50, against a recent high of 55. This show some of consolidation.

Technical:
Looking at the daily CCI, GU is still on a up trend, but showed sign of tappering side way or reverse. It managed to punch through 1.5 and should be heading towards 1.53 (EMA200)

Resistance is at 1.53
Support: 1.485

My Opinion:
Trend: up, unless the major news reverse it
Both fundamental and technical points to a consolidation, so watch out for the resistance and signs of reversal.