COMPX
so it seems like the january gap between 2660-2656 was filled today; BUT the fact is compx left the gap partially filled when it gapped lower this morning !!! so, keep an eye on the small 'daily' gap between 2660-2656 !!! if it's not getting filled tomorrow, it maybe considered an exhaustion gap <bearish> !!!
anyway, compx retreated as low as 50% retracement @2596 of the wedge <betw 2892-2299>; and rebounded to close with the indecision 'doji' !!! the doji, which is also considered a reversal pattern, will need a confirmation tomorrow; with the posibility of transforming into the strong reversal pattern 'morning star' !!! however, if compx negates the doji and descends to close at its low tomorrow <which again leaves today's small gap between 2660-2656 unfilled>, it'll bearish for the tech in the short term basis !!!!
there are 2 trend lines that will play the big roles of the next trend of the compx if broken !!! first, keep an eye on the lower trend line of the intermediate term rising channel which ought to be trading between 2 of the 61.8% retracements @2526 in the morning, and gradually ascending to @2548 before the mkt closes !!!!
* 2526 represents 61.8% retrace betw 2892-2299 <during the up trend>
* 2548 represents 61.8% retrace betw 3028-2251 <previous down trend>
thus, should compx break these supports at the given time, the next coming trend ought to be lower !!!! however, since it is considered a major trend line, there should be a retest once broken !!! if it fails to break back above during the retest, well ... not good !!!!
on the other hand, keep an eye on the short term down trend line that started from the second peak @2872+/- <quite steep>, which should yield some resistances if it fills the gap and continue to ascend higher !!! the trend line ought to be trading @2680+/- in the morning, and rapidly declining to trail @2635+/- at the close !!!! thus, if compx can break this trend line to the up side, the strong upper trend line resistances should be the neck line which connects the december peak @3028 and the 2 peaks in january @2892 and 2872 respectively; which is currently trading @2850+/-, and gradually declining !!!
last but not least ... along all those strong trend lines, here are the retracements :
between 2872-2596 <current short term down trending; but will be altered if compx makes a lower low tomorrow>
- 2807
- 2767
- 2734
- 2701
betw 2892-2686
- 2843
- 2813
- 2789
- 2765
betw 2892-2299 <the wedge>
- 2752
- 2665
- 2596
- 2526
betw 2892-2251 <the channel>
- 2740
- 2647
- 2572
- 2496
betw 3028-2251 <the previous down trend>
- 2844
- 2731
- 2639
- 2548
i dont know if compx can ascend higher tomorrow .... but it sure looks like an inverted head and shoulders is forming !!!! i'll pay close attn to the lower trend line of the channel .... if broken, it may amplify the selling pressure, and negates the inverted H&S formation <which is bullish - for those of ya who dont know> !!!!
again ... as always ... just a thought .. and i maybe wrong !!!
regards,
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