Mon. May 27th, 2024

After reading JC Parets last post on FXI, I couldn’t help but notice that rising wedge formation.

First off, lets look at the 10 year monthly candle chart. I’m seeing a 6 year consolidation rectangle in progress. A test of the top line (resistance) is close to happening. A convincing  monthly candle close above the 46 would indicate an implied measured move to 61.

fxi_m

Now, for that rising wedge (reversal) formation. Check out the weekly candle 5 year chart. The measured move of a completed rising wedge formation is indicated by the downwards slightly slanted arrow (back to the base of the formation). Another tell-tell sign is the bearish divergence with the RSI. We still have to wait for this formation to resolve by breaking down.

fxi_w

Zooming in on the daily candle chart (1 year) for some more detail of the price action. No man’s land = wait.

fxi_d

Again, this is a waiting game. That huge consolidation will make for a strong move once broken, either to the top or bottom side. Easiest is to so set some alerts and wait a little. Once triggered, I’ll come back and analyse the risk to reward, to see if it lines up with my risk and money management protocols.