weekend charting 29-01-10, page-123

Nice to see all the new contributors to the thread. The quality has been outstanding.

James (AKK),

first about 2.5 years worth of the daily to get the overall picture. Essentially AKK has been in a declining frame. It visited the lower red channel, but has rallied back out of it, and is now approaching the upper boundary of the upper channel. The 15,5,3 slow stoch is oversold, but not as deeply oversold as recent patterns indicate.




A closer look at the current context reveals a descending triangle. These commonly break up during bull markets, and down during bears, so I suppose the prognosis would go with the current market sentiment.

Simply watching which way it breaks should be sufficient. that triangle appears fairly mature now. A break below .48 would be a bad thing. A break above the EMA195 would be a good thing, and a back test of the declining red and purple lines after a break, demonstrating support, would be a very good thing.

Until you get to that point, I suggest watching the EMA8 and 34. If it gets above 8, I would want to see it hold for 3 or 4 sessions, and even then I would run a close stop. Same deal for EMA34