Re: SU ... SU is showing a very simple and basic pattern over the last 9 trading sessions. It is consolidating, forming a base or an area of congestion (demand), if price moves above the 9 day pattern.
When price breaks above that area of demand, everyone who has bought in the last couple of weeks is a winner. Everyone is happy. Momentum should take price higher.
This same base, or area of congestion will also represent supply coming to market if price drops below the rectangle.
If price drops below this 9 day base, everyone who has bought in the last two weeks is now losing money. Most won't understand why SU can drop like that when they conceive the wonderful fundamentals in play. Some will start to panic. They will begin to sell if price can come back up and make them whole again. Others will sweat it out and then the real panic begins if price should fall below the 50 day moving average.
It all begins with that 9 day base marked off in the chart.
If looking to get in for a short term trade, there are two low risk entries.
1. Buy the lower end of the box, with a stop just below the box.
2. Buy the break out above the box, with a stop somewhere deep into that supply, perhaps just below the midway range of the box.
stockcharts.com[h,a]daclyiay[d20051116,20060116][pb50!b20][vc60][iut][J67100169,Y]&listNum=1
Technical analysis doesn't have to be difficult in order to work. It doesn't take a bunch of fancy indicators. All you have to do is know that a bunch of people have bought over the last couple of weeks and understand their emotions if price breaks out above an area of demand. Others who are afraid of missing the boat will pile on and move price higher.
Or, understand how they will feel when all of them are holding a losing position once price breaks below that area of demand. Demand then becomes supply as losing positions want out if they can just get out even or keep their losses small.
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