The Run in the Spanish Market is Over…Or Just Getting Started
- Posted by Greg Harmon
- on December 28th, 2012
European equity markets have been red hot with the Spanish Market ($EWP) being one of the best since mid November. But there are signs that the run higher is at the end. The light blue band has been a difficult area for it over the last 2 years. And with the Relative Strength Index (RSI) in a technically overbought condition a reversal is sought by many soon. The consolidation taking place at the top of the ‘W’ could be the start of a reversal. But there are also several signs that this could
be the start of a massive run higher. Above that blue band there is very little previous price history to slow it down. The ‘W’ and then consolidation is also a Cup and Handle and there is an Inverse Two Heads and Shoulders pattern that broke the Neckline last week. These give price objectives between 39 and 40.50. And the Measured move higher out of the bull flag takes it to 33.40. The reaction to the blue zone is the key on whether you play this long or short.
Join the Dragonfly Capital Views Premium Membership
Sign up here to get deeper analysis and nearly 50 trade ideas every week.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Stalking Illinois Tool Works for a Trade
- Premium Earnings 9-17-14
- Is the Run in the Chinese Market Over?
- Trading Yahoo in a Post Alibaba World
- Premium Earnings 9-16-14
- Another Reason the S&P 500 Could Reach 2500
- The Cup Looks Full on Sally Beauty Holdings
- My Thoughts on A Possible Pullback on the S&P 500 (video)
- Top Trade Ideas for the Week of September 15, 2014: Bonus Idea
- Top Trade Ideas for the Week of September 15, 2014: The Rest