I trade a combination expected crowd behaviour, fundamentals, trend lines , inter market patterns ad some price action.I often ignore price action on short time frame and rely on experience to see longer horizon.
1/ Russia's stance on Libya has shifted. For the first time it is suggesting that Gadhafi should step down. Russia's Deputy Foreign Minister Sergei Ryabkov was quoted by Russian media Friday as saying that Gadhafi had forfeited his legitimacy as Libyan leader. "It's necessary to find a formula for Gadhafi to leave, and such a step would help settle other issues," Ryabkov said. Russia also signed up to the G-8 summit declaration, which said Gadhafi "has no future in a free, democratic Libya. He must go."
2/ life is clearly getting more difficult for Gadhafi's inner circle. One Western diplomat made this analogy: "It's as if Gadhafi is on a desert island, and the tide -- slowly and sometimes even imperceptibly -- is gradually closing in, and his room for maneuver is shrinking."