Wednesday, January 19, 2011

FXI another bear flag breakdown




Here's the familiar bear flag. Note the trend lines are drawn a bit narrow, the reason why is the two days sticking out were both false breakout/breakdowns, the reason I know this is because of the quick and immediate move in the opposite direction.

On the 30 min 3C chart you can see both with divergences representing the false moves so that gives us some further confirmation

The 15 minute shows the negative bias as well as the false breakout as well. Note the position of 3C at the recent high, this gives me some confidence we are not seeing a false breakout as the distribution pattern is larger-actually throughout the bear flag, which is the very reason bear flags exist.

The 1 minute chart is in confirmation of today's move out of the flag.

This is a fairly new breakdown so it's in decent position.
Stops that can be used include $44.65 and $44.85

No comments: