Island Reversal

Please click here for a chart of Dow Jones Industrial Average ETF (DIA).

Note the following:

  • The chart shows the formation of an island.
  • The island formation shown on the chart is considered bullish in traditional technical analysis.
  • This island formation was due to short squeeze. Please click here for a chart regarding short squeeze that we previously provided.
  • Since the island shown on the chart was formed due to a short squeeze, investors should consider this formation suspect.

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