The weekly buy signal was generated. Increased volume and breakout in CCI seem to confirm upward direction. It also seems the main trend has been reversed, however we would like to wait few more days to see if the WIG Index remains above 29000 and it's not bear trap.
There are two patterns we might want to consider:
- The symmetrical triangle pattern (as per chart) gives us target price ca.31500.
- The inverse-head-and-shoulders pattern has been drawn on the chart, with target price ca.38000.
The preferable scenario will be rally to ca. 31500, then retracement to 29000 and rally above last high. That will be perfect scenario; nevertheless, we have to work with what we see, not what we want to see.
Some thoughts about current economic situation in general (here).
Quite interesting article on banks (part 1 and part 2).
Here are few ideas for the big question if we are still in bear market?
There is a very interesting entry in Airelon's blog about trading in general. Make sure to watch video.
Sources:
[http://seekingalpha.com/article/134546-do-you-believe-banks-are-recovering-part-1]
[http://seekingalpha.com/article/134549-do-you-believe-banks-are-recovering-part-2]
[http://www.trystero.pl/archives/3028 (via Google Language Tools]
[http://seekingalpha.com/article/134586-monitoring-the-economy]
[http://investorandtrader.blogspot.com/2009/05/find-your-bias-for-entrances-video.html]
[http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:head_and_shoulders_b]
[http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:symmetrical_triangle]
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