End run? Fake out? More of the same….

2010-06-24-induTwo things have occurred here in the hourly chart.  The little uptrend line was broken and it appears that price has returned to the congestion pattern.  Meaning that the supposed buy signal is canceled.  It appears at this moment to have been an end run, or a false breakout.  Given the conditions during this pattern this is no surprise.  It is patterns like this which drive traders crazy.

If readers can regard it as just a downwave which will in time play itself out they will rest more tranquil.  Sometimes easy to say and hard to do.

We would not want to be buying until the latest downtrend line is broken.  And even then we will be watching carefully.  One false signal begets another.

2010-06-24-indubHere is the daily view where we see it reentering the congestion.  The question remains unanswered.  Once again we look for a test of the low or a penetration of the high.

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