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Russia spent a few years and a few Dollars building the Olympic village and getting ready to host the games. Did Putin blow all that goodwill in a few days, after the closing ceremony? I will leave that up to others to debate.
The above chart reflects that the Russia ETF (RSX) was near falling resistance and started acting weak, before the games and before the movement of troops started. RSX is down almost 50% in the past three years and is now hitting the 61% Fib level of the financial crisis; for the second time in two years.
Should traders trust Putin or the Power of the Pattern at this point? Potential double support is at hand. Taking a bigger view of the pattern, a descending triangle is in place suggesting that if support is taken out, the declines in Russia are far from over with!
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