Monday, September 12, 2011

Brief Rally Ahead?

Click on Chart to Enlarge

There is no confirmation that this upward consolidation is complete, however, today's break of last week's low may indicate weakening and suggest that the pattern will complete at a lower high than the 1230 level. It looks like a brief upward flat pattern may form here which suggests 2-3 days of upward prices from here. This would likely give another test of the red resistance line before a possible break to new lows. See the notes on the chart for additional info.

I am going to hold the current TWM trade open with this in mind, but a breakeven stop could be used to remove risk.

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