fosters support, page-7

Hi folks,

In answer to questions about left hand bias,
FGL has answered it in classical style.

To expand on that:

Take any market coming off a low, after a long
downtrend, like FGL on the 220702 ..... it
subsequently makes a sharp rally for the next
month into August 2002, where it made a high.

This rally was of quite high momentum, but the
slide over the next 5 months had a mean
momentum at a much lower rate to the downside.

During the past six months, that August 2002
high has not been challenged ..... and, in
fact, the market was making lower highs,
during that period.

By the time of the summer solstice 221202,
FGL had already tested the support around
4.45 (220702) once again.

Here we are exactly 180 days from the 220702
low and that support has failed.

So, this market followed the left hand bias
theory, where a market rallying sharply off
a low, then sliding away slowly to test
support is a weak market.

This is similar to a descending triangle.

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Conversely, if FGL was strong from the
220702 low, it would have shown a long,
slow build up, with a short retracement
near the latter half of the same 180 day
period.

This would then be a right-hand bias,
which is found normally in an uptrend.

happy holiday weekend all

yogi