Bullish shaven head candlestick closes above resistance

Reference the last chart analysis for the S&P 500 Index published on August 24, 2012.

Some points to ponder from the above chart:

• Tall bullish shaven head candlestick closes above resistance.
• Now must hold above the resistance zone.
• The resistance zone will be the new support zone — reversal of roles concept.
• Volume must increase to sustain the intermediate uptrend.
• OBV is not confirming the uptrend: this is a concern.
• RSI is confirming the intermediate uptrend.
• If the index holds above 1,425 then the intermediate target is 1,530.

Must read articles picked from the Web:

• S&P 500 expected to hit 1,615 by 2013 year-end: Citigroup — FP — September 10, 2012
• China goads commodities bulls — MarketWatch — September 7, 2012

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Note: This technical analysis is for educational purposes so you can learn to trade online using candlestick charts. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The chart snippets are from BigCharts.com which I recommend and have used for fifteen years. The author of this article may hold long or short positions in the featured stock or index.

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