COMPX 04/11/01
short term intraday basis
the easiest way to break the strong resistance, just 'gap' over it <GGG> !!! so, compx gapped and opened above its resistance and it just took off !!! yes, i think it officially broke out !!! however, it does NOT mean that it will not consolidate !!! compx went up and along forms a rising channel/fork/flag depending on how you view it !!! since the compx closed with a reversal 'dark cloud cover' in its short term intraday chart <and the fact that it was shooting up vertically - GG>, one may assume that it's likely to start its <presumably short term> consolidation tomorrow !!!! i'm not saying that it cannot go any higher tomorrow, but it is more likely to be consolidating !!! if in any case, it ascends to retest the upper trend line of the fork early in the morning, thus creating wider trading range, i dont expect it to be able to break out from this up trending fork !!!!
there are 3 important short term UP trend lines to keep an eye out tomorrow !!!
1) the upper trend line resistance of the fork should yield a resistance between @1891 in the morning, and gradually rising to @1920+/- in the afternoon !!!
2) the middle trend line of the fork <i suspect that compx may start its consolidation from this trend line> should yield a support/resistance between @1843 in the morning, and again gradually ascending to @1875+/- in the late afternoon !!
3) the lower trend line support of the fork should be trading at the lower gap <full gap; not the partial gap> support @1757+/- in the morning, and gradually ascending to @1790+/- in the afternoon !!!!!
should the compx start its retracement/consolidation early tomorrow morning as speculating, watch out for that 'cup and handle formation', where the bottom of the handle MAYBE trading at the upper gap support, which is trading in conjunction with the lower up trend line and the short term 61.8% retracement @1771 !!!!
on the other hand, should compx successfully break the current horizontal trend line resistance @1865+/-, there are a few upper resistances prior to reaching the strong gann line <2-1> which is trading in conjuction with the previous peak and the horizontal trend line resistance @1980+/- !!!!!
retracements
1868-1711
- 1831
- 1808
- 1790
- 1771
1868-1619
- 1809
- 1773
- 1744
- 1714
1980-1619
- 1895
- 1842
- 1800
- 1757
2028-1619
- 1931
- 1872
- 1824
- 1775
2244-1619
- 2097
- 2005
- 1932
- 1858
as always .. just a thought, and i maybe wrong !!!
regards,
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