XLI weekly chart shows the overbot conditions on the stochastics and RSI, the blue rising wedge and the negative divergence across all indicators that created the spank down last week. The teal line in late 2010 early 2011 forecasted higher highs in price after a pull back. The doji candle forecasted the top and pull back in February, which occurred, and then the higher highs the indicators wanted occurred a week ago. What typically happens, as in this case, the indicators lined up with negative divergence to create the next pull back, which is now.
The rising lower trend line of the upward channel and horizontal support form a target area at 37.25-ish; if this level is lost, XLI will be in serious trouble. Key areas of support below are 35 and 32. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.
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