20081125

The WIG Index had a quite big volume today:



The intraday chart look quite good (possible triangle?):



The medium- and long- term are still in sell, but intraday chart shows us small rally and gives us some hope. Considering high close in US that gives us short-term buy signal.

Let's take a look at weekly chart:



It's possible the WSE bottomed at 24125; however, the overall situation suggest rather continuation of downtrend and the cash is still the king.

Right now there are two important levels in weekly timeframe: 24125 (low from 27th Oct) and 29600 (high from 4th Nov). Other indicators like oscillators, trendlines or Fibo levels can be drawn in few ways, thus they tend to be more subjective.

At the end something interesting - more scientific approach to Technical Analysis (here).

Sources:
[http://web.mit.edu/alo/www/Papers/1705-1765.pdf]