Don't Ignore This Chart!

An Inverse HS for the Aluminum Index

 | 

The DJ US Aluminum Index ($DJUSAL) traced out a massive inverse head-and-shoulders over the last nine months and broke above neckline resistance this week. With this pattern representing a large base, the breakout is bullish and targets further strength towards 140. Careful though, the index is already up over 40% from its July low and getting medium-term overbought.

090806djsual

Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
Subscribe to Don't Ignore This Chart! to be notified whenever a new post is added to this blog!
comments powered by Disqus