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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (90272)	3/4/2017 8:57:02 AM
From: Underexposed	1 Recommendation Recommended By GROUND ZERO™ Read Replies (1) \| Respond to of 218635

Thanks for your comment. I can see where you are coming from... The bottom of that wedge that you show in your chart, corresponds to the diagonal support line I show in the P&F chart... and that should be a fairly strong support since it has so many points that make up that line. You chose a diagonal line for the top of the wedge whereas I chose a slightly broad based horizontal line. I could have gone your way as well....personal choice. I don't think that resistance point is as strong as the support. On the whole though what impressed me the most was the muted response in My trigger chart.... A 1% pullback in share price should have generated a decent down tick in the MACD and an up tick in the BBWidth and it was not really noticed at all. My assessment though is barely bullish overall though so this is not a slam dunk at this point. 3 days ago I would have rated this play higher on the bullish side though... so things can turn quickly... either way. If I were in this play I would protect myself with a limit stop loss set some distance under the diagonal support.... I think you have other methods using options to be protective. Another thing to consider is what the banking indices are doing Dow Jones US Banks Index I I won't do the full meal here but the Trigger chart show the security entering a period of consolidation. But where DB was very mildly bullish in its chart. This chart is much more bullish.... see the Slow Sto pegged high over 80 and the MACD has a positive slope... The BBWidth has a positive slope too but hardly dramatic... I expect that to go negative and fall to 5 as the Bollies tighten... and that is a good thing...What we want to see is the indicator pattern like shown on Nov 8... we sort of had a wussy breakout on Feb 13 show by the lack of enthusiasm of the BBWidth then. KBW Bank Index On a bullish scale this index falls between the Dow Jones Bank Index and DB. It too is in consolidation. The Slow Sto is still bullish... The MACD is fairly flat with a slight positive slope... the BBWidth is falling to 5 or less as the Bollies tighten So... from this I would suggest that DB will rebound off the support but a breakout is down the road. Both overall bank indices are not in a hurry to exit their consolidation period yet and I doubt DB will go it alone. But then again perhaps Fundamentals will give it a boost over others... I am a beginner in that kind of analysis :)