weekend charting 29 30 august 2009, page-58

pencilin (nxs)

I have left the long term fork out of frame. I have in frame a ST cyan gap fork, a blue ST standard fork with a lower warning line and a green support trend line which closely approximates the support tine of the long term fork. I also have the ema34.

The cyan fork has been capping price for quite a while. The good news is the resistance tine was busted, and appears to have been decisively busted. The blue fork unfortunately had it's support tine busted, so the downside support on that one is now the warning line. More good news is that the ema34 seems to be helping out. The bad news is that there have already been a few retests of the old blue lower tine from below, and they have all been failures.

I think your best plan would be to wait until the market for this equity develops a bit more structure, regard ema34 as support with your stop below it, and regard the overhead blue tine with suspicion and respect. Develop your trading plan with multiple what ifs on this one.

I will be looking for an entry on the lower blue warning line, with a tight stop under it, and a conservative first target to offload 50%. If I dont get an entry, I will not shed a tear.

have fun with it. I have a couple of mates in this one so I might do some work on it in a couple of weeks.