FXCM (FXCM Inc.) at 11.69 BREAKING OUT OF A BULLISH WEDGE PATTERN (BUY)

FXCM has broken out of a falling wedge pattern (from 16 Aug high/19 Aug low) following the bullish RSI divergence formed from the 25 May to 09 August 2011 lows on the daily chart. While the 10.57 pivot low holds, there is scope for bulls to re-open the August high at 12.66 (Resistance 1). An upside break there would confirm the higher low at 10.57 and extend gains towards 13.35 (Resistance 2), then possibly 14.14 (Resistance 3). However, a break below 11.36 near the wedge upper bounds would delay and expose the 10.57 key support (Support 1). A downside break there would confirm a lower swing high under 12.66 and risk a deeper setback towards 9.43 (Support 2) ahead of 8.13 (09 Aug YTD low, Support 3).

Trading Indication: Short-term (Intraday):

Buy at 11.22 or lower;
Target at 12.66 and higher; Stop Loss at 11.00< (2.0%)
Long-term: Possibly sell higher