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Strategies & Market Trends : Ask Vendit Off-Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: Spreck who wrote (8082)	4/22/2005 7:23:46 AM
From: Walkingshadow	Respond to of 8752

Hi Spreck, I agree that CLF looked very good, with a very bullish move off support after a correction back to just under the 100 sma. CLF had pushed open the contracted BBs, but pushed up hard off the lower rail. There were also two consecutive bullish candles that demonstrate good follow-through. Furthermore, there have been a series of volume surges as CLF traded down, indicating accumulation: stockcharts.com[w,a]daclyyay[dc][pd20,2!b100][vc60][iLg!Lp14,3,3]&pref=G 139.142.147.218 You can see that CLF is very oversold. The long-term charts show that CLF is in a strong uptrend that began almost 2 years ago: 139.142.147.218 139.142.147.218 Also the long-term charts show that CLF had gotten ahead of itself, but has corrected nicely. There is evidence that the correction is about over now; you can see the early technical buy signals, and CLF is trading in the middle of the regression channels, an area of relative support. CLF is at a crossroads here short-term. The uptrend looks very strong, and looks to continue, but still I think there's a reasonable chance CLF might first correct back to $62 again, based partly on the intraday chart: 139.142.147.22 There I think it will again find support, and continue it's uptrend. Another thing that suggests this is today's candle. But on the other hand, in the past. with these kinds of candles often have not signified a reversal in CLF. So I don't think today's candle is very significant. If I were trading CLF, I would probably be patient, and keep a fairly loose stop well below the intraday moving averages for sure, probably below $62. CLF looks better as a medium-term trade, so I think patience could be well rewarded here. Hope this helps, T