Even though Fluor has been trending lower since the August high, the decline looks like a correction after the April-August advance. First, the advance was big and some sort of correction or pullback can be expected. Second, notice that the decline retraced 62% of the prior advance and a falling channel is taking shape. FLR bounced in early November, but fell back below 45 last week. The stock rebounded on Monday with above average volume and this is what caught my eye. Bottom pickers are already circling the wagons. Trend followers will be waiting for a break above resistance from the November high.
About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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