Potential reverse symmetrical triangle also known as megaphone formation in progress as a rebound on 8 Feb 2010 takes flight towards the blue dotted major resistance line. If the current tiger pounce continues next week a test of the gap resistance is imminent. A move above 4.00 will invalid this potential megaphone formation.
A retreat from the blue dotted major resistance line will challenge the immediate support at 3.86 followed by 3.80 and then the 3.75 to 3.73 support range. Breakdown of 3.64 to 3.60 support zone means a strong bear will try to punch through the lower bold red support of the reverse symmetrical triangle. Breach of this support confirms the bearish megaphone formation and more downslide is expected.
Looking at the current formation we can see half a diamond. The right side of a potential diamond may be created from a failed megaphone. We will just have to wait patiently as the market determines the fate of this chart.
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