On COMPX... look at any 15 min chart.
The rally from last Friday’s low occured so far as a three wave move, and unless we break out above today’s high, it will remain ‘corrective’. Trading above today’s high would be bullish, and the rally would begin to look like a '5', and ‘impulsive’. So, today’s high of 1740 is important.
Breaking below today’s low of 1695 would eliminate the possibility that yesterday’s late morning high (at the same level) was the top of a (possible) wave 1. (Wave 4 doesn't retrace into the territory of wave 1). Such a break would confirm that the rally from the last Friday’s low was 3 waves, and corrective, and the short term downtrend is likely to resume.
At this time, I would look to go long on the first retracement of a break above 1740, or to short the first rally after a break below 1695. All with stops, of course. In any case, watching these levels will show with a decent degree of probability which way we are heading near term. AK |
