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Thursday, October 22, 2009

Banks Again (update w forgotten chart)

EDIT: I had forgotten to attach the ED count chart. I threw it up its the middle one.

I have a few possible counts on all the recent sideways action of the BKX.

1) Ending diagonal shown on the last chart (squeaker new high to come)
2) Ascending triangle shown on the middle chart. (squeeze and a break above near term resistance may result in a surprising runup.

Either count implies more upside to a new BKX high at the least. Or at least a very prominent H&S with a right shoulder trying to form.

There are certainly a lot of ways to interpret BKX's recent moves so it may be nothing. This is where due diligence comes in. One interesting thing is that the MACD supports the triangle count and the RSI may be working off overbought conditions while prices go sideways.

Also the ROC is interesting too.
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