Sunday, January 27, 2008

iShares Canadian Materials ETF Analysis for 01.27.2008


Monthly chart shows possible 5 waves up into current resistance. IF this is 5 waves up, THEN look for a retracement of the last leg up. No clear sell signal/pattern evident as of yet on this timeframe.

Weekly chart better shows the possible 5 wave pattern up into the current resistance. Sellers came out in force at the $40.90 area resistance, where the trading activity resulted in a large bearish engulfing candle pattern. Last week's trading activity saw all the bears taken out and early bulls stepping back in, to take price back towards the high. IF the current support holds, THEN look for a re-test of the high and higher. IF the current support breaks, THEN look for a deeper retracement ahead.

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