Friday, March 14, 2014

RSX Russia Sideways Symmetrical Triangle Failure Tight Band Squeeze

The RSX breaks to the downside over the last two weeks as the Ukraine turmoil increases. The US plans to announce serious sanctions against Russia on Monday in response to the Crimea succession vote coming on Sunday. Using the vertical sides of the triangle from 2012 which are about 10 handles, the failure at 25 targets 15. Price is at 21. Call it a 15-19 downside target. The indicators collapsed under their sideways triangles and the red lines show weak and bleak indicators that want more low prices even after any bounce occurs on a weekly basis.

The standard deviation bands squeezed in tight to begin the year and the price move was forced south. For the year, the RSX has dropped from 29 to 21, a loss of 8 points, -28%, signaling a bear market for Russia moving forward. The West can limit Russian travel, freeze bank accounts and implement other sanctions, however, the ultimate sanction is a lower Russian stock market. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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