Ringing in the New Year, oil takes a jaunt to $100, first with an 'erroneous trade' then with a paper trade... still .5% away in electronic trading. Over the holidays, I spent a bit of time going over charts and didn't see a rosy outlook in the near-term crystal ball. RIO, RIMM, ^DJI technicals are all pointing southward... Is Google the silver lining? The charts indicate a pattern developing for a 20% move.

 

Here are a few charts to keep you busy:

Dow Jones Industrial Weekly Descending Triangle Chart

 Dow Jones Industrial -

 Pattern Developing: Decending Triangle

Trading Conditions: Descending triangle pattern in formation on weekly chart. Two reaction highs formed thus far. Look for break on lower triangle support (around 12,700). Secondary long-term trend support at around 12, 300. Pattern target is 11,374

 

 

 

Google Daily Chart - Pennant Formation

 Google

 Pattern Developing: Pennant

 Trading Conditions:Pennant in development. Watch for breakout above upper pattern resistance line. Pattern target approximate 20% move to 848.

 

 

RIO - Vale - Daily Chart - Descending Triangle

Vale

Pattern Developing: Descending Triangle

Trading Conditions: RIO has been known to burn many a short but appears to be setting up for a decline to the mid 20's with this descending triangle. Pattern is still in development with time to buck the trend - 2nd reaction high has just formed. Watch for break below lower support line.  

  

Research in Motion - RIMM Daily Chart - Descending Triangle

Research in Motion

Pattern Developing: Descending Triangle

Trading Conditions: RIMM is forming a nice descending triangle with a target of $65. Look for heavy support at $100 - a break below $100 is a call to action.