Friday, March 26, 2010
Line A was the primary resistance line for Friday, Monday and Tuesday.
B. Prices gapped higher on Wednesday and then started moving higher on trend line C.
Yesterday, prices again moved higher at point D.
Prices are in a general uptrend, but they have consolidated in two pennant patterns A and B.
Prices moved through line C on a strong upward gap (see chart above) and have continued to move higher (D).
Fundamentally, the dollar is benefiting from the situation in Europe; the dollar is currently seen as an alternative to the Euro which is in a strong downtrend.
Posted by Hale Stewart at 3/26/2010 06:26:00 AM