(Click On Charts To Enlarge)
From Sunday's Comments:
"All 3 had bullish breakouts last week, and all 3 closed back below their respective breakouts on Friday, so as the charts stand, they look like "Bull Traps:" anyone who bought the breakouts is under water on the trade, and at least momentarity is "trapped" at higher prices."
We came into this week watching to see if these stocks could reverse back above their breakouts and spring Bear Traps, but we still have the Bull Traps in place in these 3 charts.
"FXI has a gap (see chart) that might get filled, but the 180.00 low of the Right Shoulder shouldn't get taken down. That's a serious technical flaw, if that should occur."
The FXI never got close to getting back above its Bullish Inverse H&S breakout, and the 180.00 low of the Right Shoulder got taken down yesterday, on a closing basis. Yesterday's close was 178.55, so that invalidates the Bullish Inverse H&S breakout (the pattern in green circles), and the 219.99 target is CANCELLED.
The trendlines in blue are a "possible" Ascending Triangle/Symmetrical Triangle forming. For an Ascending Triangle, the highs should be relatively flat. These highs are 199.18 and 197.79, so in this price range, that's "close enough" if anyone wants to call it an Ascending Triangle. We'll see if the FXI can find support here either at the 176.47 gap, at the blue up trendline, or if it can establish some new up trendline, then break out above the top of the pattern. As the chart stands, though, we're looking at an upside breakout on Dec. 5, that failed (Bull Trap).
CHL had a "Gap To Crap" opening yesterday, back above its 93.17 "W"-Bottom breakout and it got to an early morning high of 93.50, a few pennies above the 93.47 Nov. 14/Nov. 30 trendline, but it tanked from there and broke 89.35, the "last low" prior to the "W"-Bottom breakout. However, CHL closed at 89.40, so that could be good enough for the stock to make another attempt right here to get back above 93.17.
XING put in a second Bearish Engulfing pattern at the top of the Bear Flag yesterday. It's near the bottom rail of that pattern again, which comes in today, December 12, at 8.373.
2 comments:
OK, today XING closed at 8.30 (including after hours trading) which is actually below your calculated bottom rail of 8.37. Would you be a buyer in here? If not, what other technical factors would dissuade you? Of interest: Motley Fool has XING as one of their 5 recommended buys today.
bauz,
XING closed at 8.50, still inside the Bear Flag. I don't take after hours trading into consideration because it doesn't show up in the charts. The bottom rail, incidently, comes in today, December 13, at 8.411.
No, I'm not a buyer here. The Bear Flag that we've been discussing is a weak pattern to begin with, and as we've discussed, the upside breakout measured right to the recent H&S Top resistance (roughly 9.90 - 10.05).
We now know that, as the chart stands, the upside breakout was a Bull Trap, and we got TWO Bearish Engulfing pattern reversals that brought XING back to the bottom rail of the Bear Flag.
Additionally, we've still got THREE downside targets in the 6's IN PLAY, and the Crash target in the 4's IN PLAY.
Those factors alone dissuade me from being a buyer of XING here.
(Of interest: Motley Fool has XING as one of their 5 recommended buys today).
That is interesting. That can't hurt any, huh? :)
Good luck!
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