Okay giles, here was/is my rational on the breakout. If you look at a chart of OO, draw a line connecting the recent highs on 6-30, 7-15, and on 8-7 (that would more accurately be the intraday high). Now draw a line connecting recent lows on 5-22 and 8-19. What you will then see is what is sometimes refereed to as a "wedge" or "triangle." No matter what you call it, it shows the price moving from a wide range, to an increasingly tighter range. This movement is kinda like winding up a spring, and it is getting ready to snap. Now remember, I posted my predictions before today. I didn't expect to see a move this soon, but it started to move today. Now if you drew those trendlines before today, and extended them to the right of the page/screen, then put in today's price action, look at where the price stopped. Exactly at the trendline. That is resistance. Two things should happen, either we break out from that tomorrow, or, and more likely, we come back down to 12.25 to 12.50 and go sideways for 1-2 weeks, and then break. If either scenario occurs, we have broken the intermediate downtrend of OO. All that would be left is the long term trend. For those who want more TA reasons that I think it is going to move, e-mail me and I'll let you know what they are. To those that don't believe in TA, it won't mean anything to you anyway.
BCL
New e-mail bclund@earthlink.net |
