October 16, 2008

FGL down trend channel

By Planet Wealth

FGL has spent the last 12 months trading in a down trend channel.

(click on images to enlarge)

At the beginning of September the stock broke through the resistance that the channel had been providing, then came back down and bounced off the same line using it as support. The stock then ran up to $6.00 and back down again to the current trading price. If FGL uses the weekly support line and bounces, there will be a Higher Peak (HP) and a Higher Trough (HT) suggesting the Buyers are in control, at least for the small term.