COMPX 06/11/01
it has been consolidating sideway with the declining volume for the past several sessions. perhaps, the break out which will point to the next short/intermediate term direction of the trend may come tomorrow !!!!
after several adjustments of the lower trend lines, COMPX is still trading well within the 'bearish' rising wedge formation where the top in the past 2 sessions had failed at the february down trend line. to further add the bearishness to the equation, it also has been forming the head and shoulders formation within the wedge.
keep an eye on the same resistance @2255+/- for the break out to the up side, where the 'limited' upside potential may have been @2400+/-.
On the other hand, should the COMPX fail to hold its key support @2175+/- <keep in mind that the 10dma will also be trading near this figure tomorrow>, there are several key supports underneath, where the rebound to retest the broken wedge may have been at the neck line of the head and shoulders. if the retest the broken trend line fails, i suspect that the next point of the re-evaluation may have been @1900+/-. the several supports are
@2203 - 50% retracement of the current wedge between 2328-2078
@2174 - 61.8% retracement of the same wedge
@2149 - 61.8% retracement of the current short term uptrend between 2264-2078
@2100 - the neck line of the currrent head and shoulders formation, and the 61.8% of the 3rd down trending wave.
@2078 - the recent low.
@2019 - 123.6% retracement of the assumed broken neckline.
@1982 - 138.2% retracement of the same neckline.
@1953 - 150% retracement of the same neckline.
@1924 - 161.8% retracement of the same neckline.
@1890 - 61.8% retracement of the april bearish rising wedge.
observation only; and i maybe wrong !!
regards,
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