Sunday, January 27, 2008

iShares Canadian Tech ETF Analysis for 01.27.2008


Monthly chart shows an abc 3 wave pattern into .618 fib retracement level where bulls found resistance and early profit-taking during the last 2 months. Price is currently trading below the prior high and key LIS of $9.12.

Weekly chart shows short term support off the 89sma. No clear buy signal/pattern evident on this timeframe. IF this 3 wave pattern plays out, THEN look for an initial downside target of the .618 retracement level of the last leg up ($7.14)

Daily chart shows that Friday's trading activity resulted in a large bearish engulfing candle pattern. Look for a possible re-test of the current low of $7.83, and possibly a test of $7.57. IF the support at $7.57 not hold,THEN look for lower still.

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