20081016

The WIG Index hit the bottom once more:



On intraday chart we can notice possible double bottom pattern (but it does not mean there will be actual formation) - I think the chart look too suggestive:



Actually, the WIG Index gone a little bit below last lower, but I think we can tolerate that. That gives us few interesting possibilities. Of course the WIG Index can break the low of 29500 and go lower - which is suggested by WIG20 Index and that's more probable scenario as we are in bear market. Alternatively, the WIG Index can rally up to 33250 (where the double bottom formation is confirmed, also the Fibo level) and that could result in rally up to 37500. Nevertheless, remember we are still in downtrend and the formation has to confirmed before it's reliable enough. Let's wait then.

Switzerland bailouts UBS AG (here).

Update from 2008/10/17:
It seems that intraday Double Bottom formation failed today:



Sources:

[http://online.wsj.com/article/SB122413491899139953.html]