While awaiting the release of the government's stress-test results for the largest banks, FAS retreated to retest the top of the pattern it broke out from yesterday. This occurs in 47% of patterns. The important thing is that it held. The pattern top was at 10.05, and the FAS low of today was 10.01. Tremendous buying came in at the pattern top level, both times it tested that level, giving an intraday double bottom. It closed regular trading at 10.43. With the release of rather benevolent stress-test results at 5 p.m., after-hours trading took the price above 11.00 in minutes. As I write this, it is at 11.32 and still actively trading.
Today's retest offered an attractive entry opportunity, with the stop loss under the low of the day (10.01). Tomorrow should see a resumption of price climbing towards targets discussed yesterday, except the Point & Figure target has been raised to 27!
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