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Diamonds (DIA) Consolidating in Bull Flag
By Mike Paulenoff | Published  07/20/2006 | Stocks | Unrated
Diamonds (DIA) Consolidating in Bull Flag

The DIA's are consolidating around 110.00, which represents a Bull Flag-type of pattern that should resolve itself in another pop towards a test of the May-July resistance line in the vicinity of 111.50/70.  Only a sustained decline below 109 will begin to compromise the constructive upmove from Tuesdayââ,¬â"¢s low.  From a longer perspective, the June-July lows could represent the two coordinates of a large Double Bottom, which will trigger a powerful upside breakout upon a hurdle of the 113.00 resistance plateau.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.