EWP Spain Weekly Chart

The Spain chart shows the red downward-sloping channel where price failed the lower rail a couple months ago.  The chart has some symmetry to it with a 42 peak, 32 centerline and price tested the 22-ish low.  The headache with this chart is that the red lines for the indicators show a weak and bleak profile, not the same as the Greece chart. The red circles show how the indicators made new lows as price makes new lows, this is bearish and indicates that price needs to come back down to retest the lows to see if positive divergence will form.  Note the huge volume over the last two weeks. This also will require price to come back down to test the price levels corresponding to this high volume. If the tests occur at less volume, the bulls are ready to go. But if price comes down and volume accelerates, far worse trouble is ahead.

Projection is for a move back down to test 21-ish where the chart will likely set up with positive divergence and probably start to exhibit the Greece chart characteristics where a sideways range will develop thru the projected pink channel. Also of interest is applying Keystone's 80/20 Rule where prices tend to move from 8's to 2's and from 2's to 8's. Thus, a rupture of 22 should lead to 18 so lower numbers than 21 cannot completely be ruled out. Wait for price to come back down and note if positive divergence is formed, or not, which will provide the answer. 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.