While it is far from confirmed, the $COMPX could be creating an ending diagonal on the daily chart (left). Withing that ending diagonal the are are a couple things I want to point out, on the right hand zoom in chart. This is just the section between 3 and 4. It looks like it could be an expanding wedge. It also looks like 5 waves up just kissed the lower rail. The A wave rarely breaks out of the expanding wedge top rail. Instead, a kiss and then a retreat to the prior 4th (which also happens to be the 50% fib) and then a short-crushing break out C of 5 as shown on the right would be a nice ending to this tired bull market.
In any case, this market has had 5 waves up and it needs a day or two of pullback, should be trade-able on the short side. A break below either of the two lower rails shown on the left will be big trouble for longs IMO.
Tuesday, August 19, 2014
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