20080717

WIG rallied and managed to cover the Monday's gap. USA closed in green today, therefore the rally should continue. The next resistance will be those two bold green lines.
If the index will break those lines the long positions could be considered. However, the primary downtrend has not been negated, therefore opening long positions are against the trend and not recommended.


WIG20 jumped above the 2449 and rallied almost to 2500. The bold green lines will act now as support/resistance. Long positions should not be considered before WIG20 breaks higher line.
We can also see possibility of failing wedges formation (Encyclopedia of Chart Patterns, T.N.Bulkowski, chapter 44), however we need to wait until further clarification.

On intraday basics, one could notice reversed Head-And-Shoulders pattern with potential rise to 2550.