COMPX 07/19/01
negated the bullish piercing line printed in the daily chart yesterday, and replaced it with the 'spinning top' as of the close today !!!! what does it mean; heck i have no clue, but it sure looks scary <GGG> !!!
anyway ... if i suspect is correct, i think compx may ascend higher tomorrow !!! compx broke the intraday bullish falling wedge in the last 15 mins of trading today !!! keep in mind that there are 2 diff wedge, one within the other !!! the smaller wedge within the larger one was the one that was broken during the last few mins before the mkt closed !! coupled that to the fact that ALL of the intraday sentiment indicators are trading at the oversold territories, it makes me believe that it has a likelihood of rebounding higher tomorrow !!! HOWEVER, should compx continue to descend lower and breaks the current s/t low @2003+/- tomorrow, i think there is a chance that it may tumble really hard !!!!
in addition to the above sentiment indicators and the s/t intraday bullish wedge, neither the RSI nor the stocholastic in the 60 mins intraday basis are confirming the current intraday down trend !!!!
dont get me wrong .. i'm not bullish, not yet, but i do believe that a s/t rebound may occur tomorrow, which may last into the following day !!! last but not least, dont forget the max pain and the option expiry which may and can effect the closing prices of the securities/indexes this friday !!!! most of the stks i've followed are currently trading well below the max pain figures !!! unless the mkt crashes here, i'm quite certain that they'll try their best to bring the mkt higher in the next day or two !!!!
if the mkt heads higher, resistances are
- 2027
- 2043
- 2054
- 2066
- 2078
- 2087
on the other hand, if compx heads lower, supports are
- 2000
- 1982
- 1974
- 1953
- 1923
- 1915
if u consider yourself a 'risk lover', i would consider the gap down tomorrow to be a buying opportunity, providing that the gap wont break below today's low @2103+/- !!!! however, i really wont be surprised if they indeed try to gap it up tomorrow morning !!!!
observation only ... and i'm usually wrong !!
regards,
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