April 6, 2009
Bearish Chart Pattern – Double Top
By Planet Wealth
The end of this week saw the XAO break above the 12 month down trend channel. Does this mean we can expect the XAO to climb higher?
Not yet. Though it has broken free of this channel it is still being held down by a strong weekly support. If this resistance is respected once again, a Double Top (DT) formation has been made. This is a bearish pattern. This also keeps the major lower peaks and lower troughs going. The Seller are still in control.
Should this be broken through and the XAO starts to climb higher, a higher peak will now be formed and the resistance could possibly become support and giving the higher trough. This would then mean the buyers have taking control. But beware; there is still the overall down trend that needs to be broken to truly consider a bull market again.
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Topics: Stock Charts, bear market, candlesticks | No Comments »
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