COMPX 08/06/01
compx is trading at one of its major junctions ... a break one way or the other on monday/tuesday may set the tone for the short/intermediate term direction next couple of weeks !!! thus far, it has NOT even come close to confirming the breakout from the May 22nd upper trend line of the infamous intermediate term bullish wedge.
compx did break and close above its May 22nd down trend line although it slipped to trade below the broken trend line most of the day on friday !!! however, the first session which it broke the bull wedge, it closed the session with the long legged doji !!! then, instead of negating or confirming the break out on the following day, it printed another reversal signal, hanging man !!! although it did not confirm the reversal with a perfect evening start; but since it closed friday with another bearish reversal, and coupled to the fact that it also broke the short term june 24th bearish wedge/flag to the down side on friday, i'm more inclined to believe that it has a bearish bias on monday !!!
thus, unless compx ascends and breaks the adjusted upper trend line of the May 22nd bullish wedge @2087+/- to the upside on monday morning, i suspect that compx maybe heading down to test the key supports between 2028-2004 !!! keep an eye on these supports betw 2028-2004 IF they're being tested !!! if it bounces, it has a high probability of successfully breaking the wedge to the upside during the rebound !!! however, if it fails to rebound at these key supports, it's likely to continue to descend lower to the lower trend line of the rectangle @1940+/- !!!!! on the other hand, if it manages to break the 2087+/- to the upside early monday, i think the resistance @2100+/- will turn to be its strong support instead <yea, i think it's gonna break> !!!
now, some of ya may question my upper trend line of the wedge !!! the original upper down trend line of the wedge is currently trading slightly below friday's close @2060+/- !!!! however, since compx failed to make a higher high on friday, i have drawn another <unconfirmed> adjusted upper d/t line of the same wedge, where it should provide some if not strong resistance @2087+/- on monday !!!
all in all, although i'm leaning toward the short term bearish bias at the moment, i'm not assuming anything !!!! unless it can decisively break outta the intermediate term bullish wedge @2087 on monday, i'll likely take the down town train to 2023-2004 before i'll re-evaluate my presumably short positions <covered my thursday short positions in the afternoon on friday, currently flat> !!!! however, if it breaks or gaps above 2078, i'll take a shot at the long positions, with a close attn when it's testing @2087+/-; cuz if it fails, i'll immediately flip my positions up-side-down !!!
short term supports/resistances
- 2138
- 2100
- 2087 ******
- 2078
- 2069
- 2060 **
- 2048
- 2041
- 2023 ******
- 2004 **
observation .. and speculation only ... and i maybe wrong !!
regards,
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