COMPX 06/28/01 <short term basis>
compx is trading within the bearish rising wedge formation !!! at the moment, i dont know whether or not it's going to morph into something more bullish; but since i'm leaning more toward bearish bias at the moment, i think i'm going to be a bit more emphasize on the down side !!!
keep an eye on the 2 very important supports tomorrow if the compx is descending lower. ironically, the 2 key trend line supports are trading in conjunction with 2 retracement figures and its 10dma tomorrow !!!
thus, if compx is heading lower, keep an eye on the lower t/l of the 06/19 wedge, which ought to be trading in junction to the 38.2% retracement between 2084-1974, and its 10dma, @2042+/- !!!
if broken, the selling may amplify, and the lower trend line of the april channel <morphed from the broken wedge>, which is trading in conjunction to the 61.8% retracement between 2084-1974, @2016+/- !!!!
IF compx successfully breaks both of these supports, be careful holding any long positions !!!!!!!
on the other hand, if the compx negates its bearish divergences <such as intraday lower low RSI, intraday overbought stocholastic, and its daily reversal signal 'long legged doji', etc.> and heads higher tomorrow, keep an eye on the same 61.8% retracement between 2264-1973 @2084+/- which it failed today !!! once compx successfully breaks above 2084+/-, the overhead resistances are @2105, 2119, and 2137 respectively !!!
observation only ... and i maybe wrong !!!
regards,
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