Can assume we have created a Large Running Flat pattern
Currently in a potential Running/Expanding Flat pattern
Expecting a reversal without breaking the bottom of 1.020
If price breaks 1.020 this forecast is invalid
Strategy
Strong potential pivot point marked by long legged doji & heavily traded support at $1.30.
AMEX:XME down 3.4% on week, potential sector rotation heading into next week.
Stoch RSI in oversold position
Trade Position
Entry - $1.345
Target Price - $1.50
Stop Loss - $1.30
Target Return - 10%
Risk % - 3.35%
Risk to Return...
Following the impulsive movement up since the March 23rd low, the chart formed an expanding flat which is followed by another smaller expanding flat. The longer the build up, the bigger the potential down the track. Usually a bigger impulse (after the flat) followed by consolidation is more desirable. If you look further back at the market structure, this ticker...
