OK, then I am completely uncertain as to what will happen. I will be watching for a macd divergence on any rally to 90+, and if I take my own advice, I will trade out at that point.
As for FLC, you are probably right -- if the OSX trades below 77.40, FLC and almost everything else in the sector is in trouble, IMO. In fact, I am looking at 78.52 as the critical level for a bounce, although I can accept a brief dip below that point. One thing I like about FLC is that it made a nice divergence on the last dip, hitting 11 3/16 on Oct. 8, and then 11 1/8 on November 8. Unfortunately, what looks to be a nice pattern on the weekly charts does not meet the E-wave criteria since the 11 1/8 dip took out the May 4 price of 11 3/4 (i.e., the recent correction could not have been a wave 4, meaning we are not now in a wave 5). I assume that means the move in FLC from the bottom this year was a three wave counter-trend move ending in September, and that the primary trend is still down. That's a scary thought. |
