COMPX 08/08/01
since compx broke down from the s/t rising flag/wedge last friday, it has been trading/forming the short term bull flag !!! in addition to closing today with the indecision doji <sometimes, it's considered a reversal pattern>, s/t intraday stocholastic and MACD have both broken their down trends, and have already shown some positive divergences !!! unless it negates the s/t bull flag, breaks its lower trend line, crashes and burns, the strong lower trend line supports between 2000-1982 should provide some if not a good tradable rebound tomorrow !!!
no, i'm not turning intermediate term bullish, but i suspect that the short term rebound may and can happen tomorrow ... providing that compx wont break below the lower trend line of the bull flag betw 2000-1982 first !!!!
should it break the mentioned trend line early in the morning, a mini crash ought to be expected ... and the lower supports are @1974, 1953, 1940**, 1923, 1915, 1890 respectively !!!
on the other hand, if it rebounds at the lower trend line, or if it's gapped higher <what's the chance - GGGGG>, keep an eye on the upper t/l resistance between 2036-2023 tomorrow !!! if compx manages to break above these resistances tomorrow, the overhead resistances are @2048, 2058, 2069*, 2078, and 2087** respectively !!!
furthermore, like i mentioned this afternoon, i think MSFT and $SOX look to be setting up for a short term <SHORT TERM> rebound, which are eventually goin to help supporting the index !!!!
to put it in simple sentence .... it may not be as bad as it looks <GGGGG> !!!!
observation only ... and i'm always wrong !!!
regards,
auto |
