Home > charting trendlines, investing, stock chart breakdown, stock charts, Stock Market, technical analysis > Bearish idea updates: IWM, XLF, BAC, JJC, JO, EEM,

Bearish idea updates: IWM, XLF, BAC, JJC, JO, EEM,

I thought I’d update a variety of bearish charts that I’d noted in recent months.  I am going to ignore the momentum plays like NFLX, FB, YELP, LNKD, etc. which have dropped 25%-plus.  They have all broken down from rising wedge (or channel) patterns, and much money has already been made the shorts who had/have them.  A decent proxy for their situation may be IWM, which is just now close to breaking the primary support from 2009 after falling from a smaller rising wedge.

2014-04-30-IWM_CHARTS

Bank of American has very clearly broken down from the rising wedge pattern I first pointed out in March.  The question is how much further it can fall.  I don’t have any idea.

2014-04-30-BAC_CHARTS

More interesting is XLF, which has not yet broken down but has a very similar pattern.  It is both at the end of a rising wedge and facing a 50% retracement of the drop from 2007 highs to 2009 lows.  For those looking to short something that hasn’t already moved down, XLF seems like an interesting prospect.

2014-04-30-XLF_CHARTS

Copper (JJC) has been many years in forming a descending triangle pattern (or maybe a massive head and shouldesr?).  It broke down a month ago, rallied back to the old support and is now close to confirming a breakdown.  It has a little uptrend in recent weeks that is currently supporting.  It will be interesting to see how this plays out, and how it relates the situation with China’s debt problems.

2014-04-30-JJC_CHARTS

Coffee was a huge mover earlier this year, rallying 100%.  It is now banging its head against the same resistance and showing wild volatility.  It will be interesting to see whether coffee busts through or falls off.  I imagine only the weather knows.

2014-04-30-JO_CHARTS

Lastly, emerging markets (EEM) are facing resistance.

2014-04-30-EEM_CHARTS

A very similar pattern in reflected in the Brazil ETF (EWZ).

2014-04-30-EWZ_CHARTS

 

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