Hedgefundofone mentioned that we've done a .382% retracement of the recent rally, which is a good observation. In doing so, two patterns have emerged basis the hourly chart:
Pattern #1: A Symmetrical Triangle (pattern in yellow)
After the initial run-up off the low, which was a bullish move, this Symmetrical Triangle "should be" a bullish continuation pattern meaning that it's a normal consolidation of the gains, and that the pattern will resolve to the upside. "Should." That doesn't mean that it will, especially given all of the overhead resistance in the 12's, on up, that we've discussed.
We very much want to see the top of this pattern get taken out, which looks to be roughly 11.30.
Pattern #2: Head and Shoulders Top (white circles)
Those aren't always bearish. Sometimes they break to the downside then go up and knock out the high of the Right Shoulder, and continue higher.
The neckline of this one is 10.80 and 10.83. It did break to the downside, then this morning's high of 10.85 was a failure at the re-test of the broken neckline. UGH.
No question: a failed re-test of a broken neckline is Bearish, and we have to remember that this breakdown and failed re-test occurred back below the channel on the daily chart. UGH.
XING is languishing here, after this morning's failure at 10.85, and if it breaks down below the bottom of Symmetrical Triangle, we likely will revisit the low 10's, at least. Bummer :(
We then could end up with a Bull Flag, moving Yellow #4 down to whatever low we make, forming #2-#4 trendline that is parallel to #1-#3 trendline (forming a flag), but now we're into "could this...could that" and we're in No Man's Land, wondering what this thing wants to do.
XING needs to break out the other way to return to being bullish :)
(Click Directly On Chart For Better Viewing)
No comments:
Post a Comment