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Strategies & Market Trends : Trend Setters and Range Riders -- Ignore unavailable to you. Want to Upgrade?

To: Susan G who wrote (20616)	7/14/2002 7:23:51 PM
From: Susan G	Respond to of 26752

Looks like we are coming up on another BIG test of the downtrend line this from the May highs on any attempt to move higher. Every attempt to break out over this line has failed so far.... 120 minute with downtrend line from May mywebpages.comcast.net It may be tough this time, without major momentum or a short squeeze to push it through, with the intersection of the downtrend line from May, the resistance from the 3 black crows pattern and various important EMA resistance points all occurring in the same area - from around 1392 to around 1407. There is another battle of the EMAs going on in this area in all time frames. And more resistance all the way up, with the strongest being at 1433, at the daily 20 EMA. It hits around 1400 area along with a ton of other resistance, including the 1/2 way point on the daily 3 black crows, which we closed a few points below on Friday. There is quite a bit of resistance converging around this same point... The indexes gapped up past the 1/2 way point on the crows on Friday, but since it happened on a jamb job in the futures in an after hours no liquidity environment the breakout through that area is questionable to say the least <g> especially since the close was BELOW. That exact area acted as a pivot support/resistance area on Friday, so it's definitely meaningful short term. The NDX and COMPX did close within a few points of gap support from the big gap up on 7/5. The NDX just above, and the COMPX right below. That gap are held as support/pivot are several times and both indexes tried to make a higher lows there on Friday. NDX has to hold on Fridays low of 988.25 and the COMPX 1363.11 or both could reverse back down. Friday's lows are also the fibo retrace of Thursday's low to Friday's high, so it's an important support area. The SOX did close above its 1/2 way point though, and actually has a nice potential double bottom on the daily chart, but it needs to get through that 20 EMA, and hold that bottom or it could reverse back down, has not been above it since May. Now for an interesting twist, Oh my gosh it's a bullish chart pattern <vbg> The 15 min COMPX chart actually looks bullish, there's no way I can talk myself out of it LOL. Very interesting short term chart patterns, a small bearflag inside of a huge bullflag, which also could be the handle of what looks like a pretty perfect cup an handle pattern. You can see this pattern all the way up to the 2 hour chart, but it's clearer short term on the 15 min. On the 60 min there is a morning star reversal (bullish) at the double bottom, retest of the 1350 area lows right around noon. Could be signaling a short term bottom if that area holds. If Friday's higher low holds on any early Monday selling, and the bottom of the bullish flag/wedge holds, it may attempt to rally the top of the bullflag or even attempt a bullflag/cup and handle breakout. Which IMO, would fail without some major positive news, a gap up, big short squeeze to push it through this area above 1407, an area of massive short term resistance. But looking at the 15 minute chart, if there is not major selling again early in the week and it can break through ALL FOUR overhead EMAs it broke back down through Friday afternoon when the small descending triangle broke down, then the 1415 area, it looks like it may try. 15 minute with bullflag / cup and handle pattern mywebpages.comcast.net