Tuesday, December 21, 2010

Market Update - December 21st - Descending Broadening Triangle almost complete

So we got the rally I was looking for this week and we hit the 1255 target. The inverse H&S projection was met today and the price behavior keeps looking very similar to the chart I posted on Descending Broadening Triangles last week (In fact, it is almost identical) and I am glad I was able to indentify the pattern in its early stages. The MACD has however crossed and it is signaling a pullback along with overbought RSI levels. So the rising trendline probably be tested again before going again for another high. That number is 1242 as of today and unless this number is broken and closed under consecutively, I will expect new highs.

I have not done any trades as I am primarily waiting to re-enter my short position. And I am keeping my FXI until I see a reasonable spot to sell.

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