Merrill Lynch Retail HOLDRS(RTH) is in an downtrend but momentum is showing some life

(28-Jan-2008) (28-Jan-2008) Merrill Lynch Retail HOLDRS(RTH) closed at 91.98, up 1.71 or 1.89 % for the day. Based on our analysis, Merrill Lynch Retail HOLDRS(RTH) is in an downtrend but momentum is showing some life.

The closing price of Merrill Lynch Retail HOLDRS(RTH) is below its 50 day moving average of 92.68 (Designated by blue line). This indicates that the trend is down. The MACD histogram(Gray bars on the bottom) above the signal line(Dark Red Line) tells us that Merrill Lynch Retail HOLDRS(RTH) is gaining momentum. An downtrend with sustained rising momentum could be early sign of reversal. The MACD histogram crossed above the signal line on 22-Jan-2008, about 6 trading days ago.