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Old 08-28-2007, 04:13 AM
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Re: Candles and Financial Stocks

BSC broke support today along the 8 EMA - could this be a leading indicator of what's to come? Volume was higher but still very light.

GS is still finding support on the 8 EMA and moving sideways on lighter and lighter volume.

MER has a gap that is yet to be filled, and shows a very similar candle to BSC before it broke support today. Again, we see falling volume over the last few days.

LEH - much of the same. Stuck between the 8 and 21 EMA with falling volume. Although the candles are slightly different, I am still worried that it can't break resistance. I rarely use RSI, the only times I pay attention to it is when I see some sort of a pattern forming. On all financial stocks I am seeing support and the line turning back down.

They are all forming some sort of a wedge. Something will push these stocks one or the other sometime this week I believe. Now the question is, what is there currently in the chart that could point us one direction or the other?

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