HOT TOPICS LIST
- MACD
- Fibonacci
- RSI
- Gann
- ADXR
- Stochastics
- Volume
- Triangles
- Futures
- Cycles
- Volatility
- ZIGZAG
- MESA
- Retracement
- Aroon
INDICATORS LIST
LIST OF TOPICS
PRINT THIS ARTICLE
by Chaitali Mohile
$XEU broke out of a flag & pennant pattern and pushed the rally to new highs.
Position: N/A
Chaitali Mohile
Active trader in the Indian stock markets since 2003 and a full-time writer. Trading is largely based upon technical analysis.
PRINT THIS ARTICLE
FLAGS AND PENNANTS
Euro Index Surged Higher
03/27/08 11:39:11 AMby Chaitali Mohile
$XEU broke out of a flag & pennant pattern and pushed the rally to new highs.
Position: N/A
| The Euro Index has enjoyed a robust rally since late 2006, as you can see from the chart in Figure 1. The index surged, followed by a consolidation wherever necessary, and correcting a bit, establishing healthy support. The index therefore accumulated strength before hitting new levels. Since September 2007, the strong euro had an upward rally without turning back consecutively for four months. Usually, such steep movements are very risky, as they might give rise to turmoil anytime on maturation. But the index consolidated between 142.50 and 147.50, forming a flag & pennant pattern, adding to the bullish strength. |
|
| FIGURE 1: EURO INDEX, WEEKLY. The index has had a robust rally since late 2006. |
| Graphic provided by: StockCharts.com. |
| |
| The relative strength index (RSI) (14) also turned range-bound after declining from the marginal overbought area. And the moving average convergence/divergence (MACD) (12,26,9) had a periodic bullish/bearish crossover in positive territory. The upward breakout soon occurred on the back of these bullish indicators. The length of the flagpole is 10 (147.5-137.5), so adding the breakout level to the length of the pole is the minimum estimated level. The index has almost achieved its target of 147.50 + 10= 157.50. Traders can look to taking their profits off the table for the achieved target and the RSI (14) turning marginally overbought. Though an overbought RSI does not reflect any storms, taking your profits may be advisable. |
Active trader in the Indian stock markets since 2003 and a full-time writer. Trading is largely based upon technical analysis.
| Company: | Independent |
| Address: | C1/3 Parth Indraprasth Towers. Vastrapur |
| Ahmedabad, Guj 380015 | |
| E-mail address: | chaitalimohile@yahoo.co.in |
Traders' Resource Links | |
| Independent has not added any product or service information to TRADERS' RESOURCE. | |
Click here for more information about our publications!
Comments
Date: 03/30/08Rank: 3Comment:
|
Request Information From Our Sponsors
- VectorVest, Inc.
- Executive Premier Workshop
- One-Day Options Course
- OptionsPro
- Retirement Income Workshop
- Sure-Fire Trading Systems (VectorVest, Inc.)
- Trading as a Business Workshop
- VectorVest 7 EOD
- VectorVest 7 RealTime/IntraDay
- VectorVest AutoTester
- VectorVest Educational Services
- VectorVest OnLine
- VectorVest Options Analyzer
- VectorVest ProGraphics v6.0
- VectorVest ProTrader 7
- VectorVest RealTime Derby Tool
- VectorVest Simulator
- VectorVest Variator
- VectorVest Watchdog
- StockCharts.com, Inc.
- Candle Patterns
- Candlestick Charting Explained
- Intermarket Technical Analysis
- John Murphy on Chart Analysis
- John Murphy's Chart Pattern Recognition
- John Murphy's Market Message
- MurphyExplainsMarketAnalysis-Intermarket Analysis
- MurphyExplainsMarketAnalysis-Visual Analysis
- StockCharts.com
- Technical Analysis of the Financial Markets
- The Visual Investor