CHART OF THE DAY ON INVESTORS INTELIGENCE
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UK Chart of the Day: 2 February 2012
Chart of the day: Man Group testing downtrend resistance...
Is Man Group's long-term downtrend over? Yesterday saw the stock break the short-term downtrend, as prices rallied above 120p (see right). More interestingly, the stock is now probing the pattern of falling highs.
Technically, the stock has scope for a further rally. First, prices are far beneath its long-term 150-day moving average. This increases the probability of 'mean reversion'. Second, it is not overbought. Third, the current rally saw most former underperformers reversing their downtrends. The rank speculation in equities may spill over to Man Group.