Technical Analysis of Financial Markets

Wednesday, June 25, 2008


The unravelling of the subprime mortgage events and credit crunch has seen UBS decline 225% within a 12-month period. The decline in price action has traced a 5-wave Elliot pattern and is currently finding support at the $20 level which has served as strong support between 2001 and 2003. The ROC momentum oscillator that measures the percentage change in price from one period to the next is retesting the lows achieved during the climax of 3rd wave of the Elliot formation and is seemingly finding support. An entry into a long position with a stop-loss on a weekly close below $20 may serve as a low-risk trade. UBS is scheduled to report earnings on 12th August 2008.

No comments: