Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Befriend the Trend Trading -- Ignore unavailable to you. Want to Upgrade?

To: Evan Dimmer who wrote (5608)	12/1/1999 7:56:00 PM
From: Charles Kalb	Read Replies (1) \| Respond to of 39683

ANF -- A short-term bearish view: My reading on ANF's chart is that it is in a long-term downtrend back to July 9 with a short-term uptrend channel in place over the past six weeks. IMO a case can be made that ANF is a potential classic BTTT Short at this point, for the following reasons: * ANF has not yet broke out of the primary downtrend in place since July 9th, and yesterday's and today's price show signs of touching and turning downward from the long-term down trendline for a third time. There is always the chance that there will be a rally back to retest this trendline, but right now it looks to me to be turning downwards. * Price is also bouncing off the upper band of a short-term standard error channel drawn back to about Oct. 15th. There have been five fairly clean reactions off the error bands of this channel, and today's action is kissing off the upper band for a third time. Sell signal on Daily chart from a fast MACD(5,34,5) Histogram. %K Stochastic, although peaked in overbought range, is just touching %D not quite crossing over yet. * There is an interesting confluence of three separate resistances that IMO may halt the six-week advance and prompt some profit taking. These three resistances are the long-term down trendline, the upper band of the standard error channel, and the prior support level of a failed double-bottom which occurred during September. I would think that this triple-threat resistance likely will have an effect larger than each individually and, as I said, they all converge to a price a bit over 32, which also corresponds to the highs of the past two days. * On the Hourly chart the same long-term downtrend is still in place since July 9 and the reactions off the walls of the corresponding standard error channel are even better defined. The same triple-threat resistance applies to the Hourly chart. Sell signals on Hourly chart from MACD, Stochastics and RSI. Directional Movement ADX turned down today indicating rally over. I'm SHORT from 31-3/4 and would cover if the above-mentioned resistance is broken to upside. Initial target is 27-7/8 based on a 61.8% Fibbonacci retracement for a 12% gain.