What Direction Will This Pattern in Indian Equities Break?

While India hasn’t shown strong relative performance to U.S. equities, my article for TraderPlanet this week takes a look at an interesting pattern that’s setting up in the PowerShares India ETF ($PIN). I take a look a few of the clues given by momentum and volume and where price could be headed.

Here’s a piece:

Looking at the price action for $PIN, we can see resistance since October has been at the $17.75 level which has batted down price three times. While price has been unable to make a higher high, each dip has been shallower than the last as $PIN puts in higher lows. This creates an ascending triangle pattern, which has historically led to a continuation of the preceding trend. We can use momentum and volume to get a better idea of where the bias may be when the pattern breaks.

Read the rest: A Triangle Pattern In Indian Equities (TraderPlanet)

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Disclaimer: Do not construe anything written in this post or this blog in its entirety as a recommendation, research, or an offer to buy or sell any securities. Everything in this post is meant for educational and entertainment purposes only. I or my affiliates may hold positions in securities mentioned in the blog. Please see my Disclosure page for full disclaimer. Connect with Andrew on Google+, Twitter, and StockTwits.

About Andrew Thrasher, CMT

Andrew Thrasher, CMT is a Portfolio Manager for Financial Enhancement Group, LLC, an asset management firm in Central Indiana and founder of Thrasher Analytics, an independent financial market research firm. He specializes in technical analysis as well as macro economic developments.