FXP Follow Up

I know this isn't a glamorous momo stock, but I think it's one that has given us a fantastic opportunity and shows a lot of promise not just because of what's going on in China, but because of the nature of the chart / price pattern, a Channel Buster.

Channel Busters are the pinnacle of my motto, "Price is above all, deceiving" and a Channel Buster is one of the most deceiving price patterns out there, but they typically have excellent reversal probabilities combined with huge momentum, it doesn't hurt that it happens to be an asset that's short China which is an entry we've been looking for through multiple assets all of 2014.

Earlier today in the FXP Looking Interesting post, I showed you the longer term accrued positive divergences in FXP, but it was lacking 1-3 min positives which are more of our timing indications. I suggested that the range in FXP in this gap fill area would probably see a head fake move below the range and that is where the 1-3 min charts would go positive giving us a Full House of divergences from 1 min through 60 min (positive).

Just a few minutes ago my alert went off letting me know FXP broke the first of two support levels I was looking for as part of a head fake move.

 Here's the first break of the range of the last 2-days which is a gap fill pullback, there's another support level just below that I think will likely be hit too, it is in this head fake range/area I suspect we will get the 1--3 min positive divergences or "timing" divergences to re-enter , start a new position or add to FXP.

This is a graphic I drew that would depict the head fake and the reversal process, we just need to wait now and see if the 1-3 minute charts start accumulating as some supply is created via hitting stops.