A Bullish Pattern Failure

  • October 13, 2004
  • Tsutae Kamada

Gold is in trouble.
$GOX.X (Gold Index) failed to take out a resistance line and broke down below
last week’s low. It looks like the Index is forming a double top on its weekly
chart.

Biogen Idec (BIIB) provided us a good short selling opportunity this
morning.

10:24:43
(From TradersWire)

 Daily
Setup Alert


Biogen Idec (BIIB)
has re-crossed below the 50-day MA, and it is testing yesterday’s low. BIIB is
trading at 59.31, down 0.51.

Although it was a down day, BIIB formed a mildly bullish bar yesterday. In fact
the stock shaped bullish bars three consecutive days. I’m sure some traders have
placed their stops just below yesterday’s low.

At 10:30, BIIB took out yesterday’s low. When a bullish pattern fails, buyers
panic.

Have a nice afternoon session.

T.Kamada

If you have questions, feel free to mail them to me.