May 29, 2009
QBE Still Bearish… But for How Long?
By Planet Wealth
There are many stocks that are now giving bullish signals, but it is fascinating to see that in some sectors that are strong, there are still particular stocks that are very bearish. QBE is a stock that is particularly bearish even though the financial sector as a whole is looking strong.
This week has seen the breach below a weekly support line at $20.00. The next major support line is $16.00. Giving strength to the go is several factors. The most recent Lower Peak (indicating Sellers in control) was formed at an intersection of 3 major resistances.
This stacks the probabilities in favour of the bearish go continuing. The first resistance is a 6 month down trend line, the second is a previous up trend support line now turned resistance and the 62% Fibonacci retracement from the high at the beginning of the current 6 month down trend. Not to forget the stock is still trending down since the beginning of the market crash.
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