Shorting the Triple-Dip Rally
Last week, we used a combination of technical and fundamental analysis to analyze Apple (AAPL). Too often, we eschew one discipline in favor of the other, instead of finding ways to combine them effectively. That same theme of combined disciplines can be applied to any stock, commodity or currency. Right now, a similar situation is unfolding in the latter, specifically involving the British pound.
The pound began 2013 auspiciously, reaching a 16-month high on the first trading day of the year, but those gains were short lived. By the close of trading that day, the first sign of trouble appeared in the form of a massive shooting-star candle (shaded blue), indicating that a significant intraday reversal had occurred. The shooting star formed at the major resistance point of 1.63 (black arrows)....516 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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