http://quote.prophet.net//applets/j...7.print.gif&scope=common&host=www.prophet.net One big ass consolidation before we resume monster downtrend.
A pennant should form over a time period of less than 3 weeks. The pattern you have highlighted could be a reverse head and shoulders. However, volume is not confirming this pattern at the moment.
A pennant should form over a time period of less than 3 weeks. :confused In which stone is this written. Pennants can and do form on weekly charts, daily charts, hourly charts, minute charts. Do other formations occur over strickt time perameters?
I see a triple bottom. This thing will probably work its way up to 1000 - 1050 area before retreating in a meaningful way. IMHO.
ctrader, i see what you're pointing out. hadn't noticed that, thanks very much. whatever the pattern turns out to be, we'll know what it might be if/when it breaks or bounces off the top line on your chart.
3 weeks on a daily chart - so around 20 bars on other charts. But its just a case of what name you give it. A longer term pennant is usually called a symmetrical triangle. I'd call this a reverse H&S or a triple bottom - either way, a break above 960 on significant volume should lead to a very signficant rally of around 15%. The "worrying" item is that in this type of base formation you would expect volume to be increasing on each rally - but this 3rd rally to 960 actually is occurring on lower volume.
just remember that we also had the artificial long after the globex fiasco.....i think it was already on its way down until that happened -- anywhooo, who cares? its fun to speculate isn't it??