XL Capital Ltd forms bearish "Descending Continuation Triangle" chart pattern

2008-12-10 16:00 PM ET

New York, NY.   A "Descending Continuation Triangle" chart pattern formed on XL Capital Ltd (New York Stock Exchange). This bearish signal indicates that the price may fall from the close of 3.90 to the range of 0.10 - 0.90. The pattern formed over 44 days which is roughly the period of time in which the target price range may be achieved.

A Descending Continuation Triangle is considered a bearish signal, indicating that the longer term downtrend may continue. The pattern illustrates lows occurring at a constant price level, with highs moving constantly lower. The Technical Event® occurs when the price breaks out of the triangle formation to close below the lower trendline, thereby confirming the pattern.

This bearish pattern can be seen on the following chart.

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