I don't think that breaking above 720 would really officially end the downtrend that started since December. That trendline you have drawn only connects two points so it's not really that reliable. I would consider the downtrend to really be finished when we break through $1000 again.
agreed. I am extremely cautious using trendlines for anything other than as, hm, "background music", for my trading. And double so if there aren't much points of contact, as you point out. Still, the (shaky) trendline I drew corresponds to the larger question: "short-to-mid term downtrend seems broken, what about the mid term one since December." I could have asked that instead, but people like pretty pictures :D
ADDENDUM: You mention the number 1000 as well, and I've seen it several times in the last days... I don't buy that it's an important milestone right now. It's similar to how people thought the area between 200 and 260 was of major importance during the last recovery. It was, but only until later into the game. And in the end, it was broken rather swiftly (with help from China, of course).
My point is, right now I see 700, then 800 as major psychological milestones to be taken out, and possible points at which the recovery can start stuttering again. Once we're battling for 1000, I don't think we will still be wondering if 400 was the bottom.
