and welcome back to Stock Charts R US blog.
After some time we finally have the makings of a technical bottom. As the diagram shows above, one of the more often occurring price patterns (that may signal an end to the previous trend) is what is known as the 'double bottom'. This is where higher highs and higher lows are put in. In essence, the reverse of what had previously been happening (ie lower highs and lower lows). The public is enamored with the Bearish chatter and this is roughly about the time a bottom comes in a typical US Presidential election cycle. Refer to chart-of-the-day, Dec, 2007 study: http://www.chartoftheday.com/20071228.htm?T
One note of caution, today is the start of a 2 day meeting of the FOMC, we will have to see the market close above 138.83 (high of Jan, 2008) this Friday to confirm this price formation.....
Keep our proverbial fingers crossed,
Brian Beamish FMA FCSI
No comments:
Post a Comment