GDX IHS Measured Move Potential (BPT 24-5-2012)

UPDATE: BKX Watchlist potential trade opportunity

With the banks gewtting hit with downgrades from Moody's today, maybe this will turn into a triggered trade.  Evening star pattern on the daily chart?  Bearish?

This is a watch list candidate.  Not triggered yet, but worthy of close observation.  The premise is the banking sector has expressed weakness, and the chart suggests a leg down in possibly initiated.  If several conditions are met relating to a sustained price decline, possibly on increased volume, a relatively low risk to reward trade is an option.

TSX Head & Shoulders Pattern

UPDATE: ENB.TO Price Compression continues

30 min chart

Weekly chart

Hourly Chart from original post

GDX falls apart

KO break out move

Classical move for low risk high reward trade (MCD Daily Chart)

UPDATE: JNJ in long term price compression - potential for a move?

UPDATE:  A fabulous false break down and massive reversal/accompanies with massive volume as well - a classical example of the importance of proper stops.

On Friday 25th, the price opened gapping down, and plunged, recovered to test the resistance/trend line and gradually traded down for the rest of the day, ending the day off almost a full percent.  This occurred on only avg volume so trading on 31st will be an interesting tell.