Friday, March 16, 2012

6E - Falling Wedge on 4 hour chart

Many things are happening on this chart, but they are all explained. To sum them up, there is 50% retracement and -23.6% extension, then there is the falling wedge pattern from the double top, and the target as the distance measured from upper and lower trendline to be used as the distance from the break of the upper trendline.  Last but not the least is the positive divergence on MACD.  Notice how long it took to form this pattern, and how quickly is the move, and interestingly it was the news that fueled it.  Will it hit the target? We shall find out. Nothing is cast in stone, all technial anlysis is work in progress.

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