March 16, 2009
Materials Sector in a Bear Market – XMJ
By Planet Wealth
The Materials Sector has had a lot of people saying its excellent investing as it’s holding its own now in this bear market. So let’s take a look and see what the charts are telling us.
If looking at the daily chart of the materials sector (XMJ), it would be simple to see why so may reckon it’s a excellent investment right now. November was the last low it hit in 4 years (2005) and it has been slowly creeping up since. This makes a basis for long opportunities in SHORT TERM trades, as the last 3 months or more are up. But what about for LONG TERM investing?
If long term is more your style you must look at the weekly and see what the charts are saying. On the weekly XMJ, November was the bottom of the first Lower Trough (LT). As mentioned in previous post, Lower Peaks and Lower Troughs tell us the sellers are in control. Then there is significant resistance at 9290 where twice now it has failed to break through and is trying to push it back down. Could this be the next major peak forming? If so it will be a Lower Peak confirming the sellers are still in control. Therefore the highest probability trades for LONG TERM on this sector right now would be small.
Visit our live trading room to increase your trading results: Click Here
Topics: Technical Analysis, bear market, trading patterns | No Comments »
Comments
« Live Trading Room Results with Andrew Dimitri | Home | CBA Forming Inverted Head and Shoulder Pattern »
