Clearly, TZA has been doing some serious climbing recently. Combined with $SPX's $SML chart (which I posted earlier today), there is definitely a sense that Small Caps are getting ready to roll down.
However, technically, I am always looking for the false signals in any break-out pattern. And, sure enough, I have found a few technical events (bearish channel validation, Moving Average resistance, concerted indicators signaling overbought conditions) that may speak against a true break-out, at least so far.
Following is the technical annotation I provided within the chart:
---------------
25 MAR 2010 - TECH-NOTE: Watch for dominant DTC and reproducible patterns of "fake rallies", that just further validated that bearish channel. Breakout should occur once upper border of that channel has been violated, IMHO.
More specifically, consider:
1 - "Pre-Decline Pattern" formation
2 - 233-EMA remains "true" historical moving resistance still
- Dalcindo
---------------
TZA - 9-Day, 15-Minute Chart:
Tell me what you think.
- Dalcindo
Dalcindo's Public List
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM