Sunday, August 26, 2007

Worst Chart Nominee

You can find this "double bottom" or "bullish W" post on the Resource Stock Guide. You can also find it at

Just looking at the chart, does this look like a bottom or a top? If this is a bottom, like Boris Sobolev says, why is the whole pattern above the rest of the price movement? It is garbage like this that gives technical analysis a bad name. Obviously a pattern has to be identified within the context of the larger picture. You CAN'T have a bottom at the TOP of a price pattern no matter how nice a W is drawn on it.

If anything, this chart looks to be forming right shoulder of a head-and-shoulders pattern, which is definately NOT bullish.

Go check out the previous post and there you will find a "bullish W".

I wonder if Boris is related to Miss South Carolina?

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