COMPX
first of all ... i've noticed that the future is up sharply at the moment !!! dont know about any of you, but that is scary in my book <GGGGG> !!! if the buyers dont show up tomorrow, it may cause more harm than good; but then again, we have to see how it closes !!!
so, compx's still trading well within the short term bull flag/down trending channel !!! although it slightly pierced the lower trend line of the channel early in the trading session, it rebounded rite back in; along broke the steeper down trend line within the channel, but failed to ascend further when it reached the resistance @1700+/-; then, it retraced lower to trade along the lower trend line of the channel into the close !!!
thus, if compx can gap and open above the new adjusted down trend line @1667+/- early morning tomorrow <down trend line within the channel/flag>, there's a good possibility that it may continue to ascend higher to retest the upper trend line of the channel, which is trading @1715+/- in the morning, and descends lower to 1680+/- in the late afternoon !!!! please note that all of these trend line are down trend lines; so they'll continue to descend lower whether it's broken or it's being tested !!!!
however, although it may gap higher than the adjusted down t/l .. it's not a guarantee that it'll ascend higher !!! keep an eye on the volume <buyers> !! should the volume also rise sharply, chances are it'll continue to ascend higher to retest the upper t/l of the flag !!! on the other hand, should the momentum seize and it rapidly descending lower, be careful catching that falling knife !!!! the lower trend line of the channel ought to be trading between 1615+/- in the early session, and 1575+/- in the late afternoon !!!! if it descends lower, but does not break this trend line, the current game continue !!! however, if it breaks this lower t/l of the flag, back to the drawing board !!! but, it does increase the probability of its testing its horizontal trend line @1500+/- !!!
keep in mind that ... although it may retrace and rebound within the down trending channel, as long as it cannot break itself outta the flag, the rebound is meaningless; consider it just another technical rebound to release some of its oversold sentiment, before continuing to descend lower !!!!
as of the closing today, it looks awefully ugly in its weekly chart !!! if the rebound does not materialize tomorrow and extends into friday, we may see the support @1500, 1450, 1400, and 1357 being tested next week <note the word 'may'> !!!
current retracements
1852-1619
- 1797
- 1763
- 1736
- 1708
1980-1619
- 1895
- 1842
- 1800
- 1757
previously posted:
- 1608
- 1652
- 1679
- 1701
- 1723
- 1750
- 1794
- 1838
- 1865
just an observation .. and i maybe wrong !!!
regards and good luck,
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