Friday, September 25, 2009
1.) Prices formed a double top with the first top at the end of last year and the second top at the beginning of this year. This is a reversal formation.
2 and 3.) These are support levels which prices have moved through.
4.) The MACD is deceasing and has been for the entire year.
5.) The RSI is decreasing and has been for the entire year.
6.) The EMA picture is bearish: all the EMAs are moving lower, the shorter EMAs are below the longer EMAs and prices are below all the EMAs.
1 and 2.) These are technical support levels which prices have moved through.
3.) Prices consolidated in a triangle formation. Triangles are reversal and continuation patterns; that is, they occur during a trend.
4.) The MACD have been decreasing all month but is about to give a buy signal by crossing over its signal line.
5.) The shorter EMAs are below the longer EMAs. The 20 and 50 day EMA are moving lower, but the 10 day EMA is starting to level out.
Bottom line: this is still a very bearish chart.
Posted by Hale Stewart at 9/25/2009 06:28:00 AM