Tuesday, November 11, 2008

The FXI Answer

I left my analysis of FXI open ended in the last post and a few of you seem to think I was bearish!

The pattern is in fact quite bullish, and points to a bottom formation. Compare the current volume pattern to that during the top and bear run. For the first time, positive volume exceeds negative volume, while price forms a volatile trading range at the lows. This is a bullish pattern!

However, lows can still be tested, so I will only enter on weakness.

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