TEO has broken down for the descending triangle pattern recently posted, triggering a short entry. downside target remains as previously posted. TEO is Telecom Argentina and as the winds of socialism continue to blow down there with the latest nationalization plans for YPF, the spillover seems to be having ripple effects in other argentine stocks. it’s possible that’s not the reason for this bearish pattern to trigger today, as i have no idea if the gov’t already owns some of all of TEO but that’s irrelevant when using technical analysis. as i like to say: Charts don’t lie, people do. TEO updated daily chart first, original 2-day second, and YPF last for a quick visual reference of why it might not be a bad idea to lighten up on your domestic holdings when a socialist regime takes power in your country.
