Wednesday, March 9, 2011

Inverse Head and Shoulders Targets 1345

The market keeps closing inside the Triangle pattern but soon we will see a break out from it. Today the market sold off initially but quickly bounced back, forming the right shoulder of an Inverse Head and Shoulders that targets 1345. So if this support for the right shoulder holds, the most likely outcome is a bullish trust out of Triangle. I ended up covering my shorts at a small profit after seeing this pattern forming and unless the pattern gets invalidated, I will stay on the long side. I still think the market is being oblivious to obvious problems to the economy as a result of high oil prices and Middle East turmoil. But I since trade with the trend, I am putting my personal opinions aside and going with the charts.

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