December 24, 2008
FGL – Bearish
By Planet Wealth
FGL has given some bearish signals on both the weekly and the daily.
Looking at the weekly first, we can see a large Head & Shoulder pattern which is a bearish signal. The right shoulder has been formed by the head breaking through the long term up trend and changed it to resistance, making the shoulder. A strong weekly support is around $5.25. If this is broken through this could be seen as a neckline break.
(click on images to enlarge)
When going over to the daily the same weekly lines are transferred over. As well as these weekly lines there is a smaller Head & Shoulder pattern that has formed and is on the verge of breaking the up trend from the last six months which would be not only a break of the small Head & Shoulder pattern but also of the large from the weekly. Keep watch on this stock and don’t forget to stack the odds in your favour by using other signals from a reliable system together with this information.
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