FXL Chart

While I can see why a few would be happy to see the FXL share price bottoming out recently, this company still has a very, very long way to go on the charts.

I've pulled up a weekly here to show just how much over head resistance there is as FXL moves back north since the company lost over 70% of its peak value over the past 5 years. The weekly chart still hasn't given a buy signal and the share price is still technically in a downtrend.

There is HUGE resistance coming up at the 2.25-2.50 range as shown by the SMA200 and horizontal resistance from the last leg down. While MACD, DMI and RSI are all bullish, the volume is still very low and still trending downwards, suggesting that this rally isn't as great as it's stacked up to be.

A smart investor who is looking for a longer term hold would wait until this massive resistance is overcome on significant volume. This reduces risk by a huge factor. Even then, I would still be very wary as every leg up after a breakout will be sold into by long-termers looking to sell out at break-even or on relief rally's.

Good luck, but don't get too excited!