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Written and copyright © 2008-2011 by Thomas N. Bulkowski. All rights reserved.
Blog Posting: February 15, 2008, FTSE/Xinhau China 25 Index Fund (FXI)
The chart shows the China ETF and it is one of indecision. In the last month, the fund has entered what looks to be a symmetrical triangle
formed by two converging blue trendlines.
I drew the green line along the bottom of the triangle, backward in
time to the congestion area in July. Along the tops, I drew a red line. This line represents overhead resistance.
If the ETF does break out upward, then look for it to throwback at the red line especially since it coincides with the three valleys in November
and December (numbered).
FXI Aftermath
The breakout from a symmetrical triangle can be in any direction and when it does breakout, price sometimes retraces its move, dropping out
the opposite side of the original breakout.
That is what happened here. Price closed above the top trendline and then reversed, moving below the bottom of the pattern. On a happier note, price rebounded and when it touched overhead
resistance shown by the red line, the ETF reversed, just as I predicted.
-- Thomas Bulkowski
Copyright © 2008-2011 by Thomas N. Bulkowski. All rights reserved. Welcome to Psychiatric voice mail. If you are paranoid delusional, we know who you are, what you want, and we have already traced this call...
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