Sunday, 3 April 2011

Financials are looking GOOD on weekly support !!

Financials are looking more and more like they have put in a bottom with the weekly charts looking good. If you are looking to make a contrarian bet that the Financials are at support, then this would be a good time to place your bet. The Dow Jones Index have shown surprising strength and we need to respect that the general market is indeed going higher at this rate. Do note that these are weekly charts. Weekly charts are powerful but takes time to form. Standing in the way of weekly traders would be suicidal. Holding time frame would be for a few months.

I have initiated a position in BAC on Thurs (31 Mar) and Friday (1 Apr). Will look to build up a position in FAS in coming week.


Bank of America (BAC) - Reversal candlestick pattern spotted on Ichimoko Kijun line support on weekly charts.




Goldman Sachs (GS) - A successful retest on the Ichimoko Clouds. It is sitting on top of the bottom channel of a symmetrical triangle formed over more than 2 years! The longer the time frame the greater is the relevance of  the breakout. We should wait for the breakout then buy or sell the breakout. However, I am anticipating a break upwards and this would put my stop loss at the blue circle indicated in below chart.



Financial Bull ETF (FAS) - Any weakness in this financial bull ETF should be bought as long as it stay within the triangle. I would expect a powerful thrust up or down once the price action managed to break out of this symmetrical triangle. This is a coiled spring!







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