FXI above long term resistance

FXI has created some separation above the resistance trend line in a 5 year pennant pattern.  This would seem to be awfully bullish for FXI, and by extension perhaps the rest of the world (though the terrible performance of China hasn’t dragged down world markets over the last 3 years, so maybe its influence is waning).  This move to the upside has also been accompanied by a “golden cross.”  Here is how I see the chart:

2012-12-10-FXI_CHARTS

The one slightly cautionary thing I notice is that moneyflow has been declining over last 6 months as the price rose.  This bearish divergence is one cautionary element still in place to this otherwise bullish note.

Advertisements
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: