getting very close to the bottom, page-14

Everybody says it's a bear market and COH is going to drop to sub $40. Buy when everybody thinks it's a screaming sell and sell when the crowds start chasing the price...

As mentioned in the original post last week, for signs of near term bottom, i am looking for down candles with narrow range coupled with moderate volume. This monday and tuesday's candles showed just that. This indicates demand is soaking up supply.

Looking closely at last two day's action on 5mins chart, the behaviour has obvious change. No more nice and easy short terms swings which the long/short signals were simple to pick for day traders. Instead on monday morning, COH whipsawed in an ascending triangle fashion, ended with failed break and dropped lower on tuesday morning to new low, but the afternoon uptrend channel clearly rejected the new low.

With US DJIA made stunning recovery in the last hour of the trading session last night, which by technical definition marks a key reversal day. It would be ironic indeed for the bear market to have come to an end on the very day it convinced many that the bull market was dead. I am expecting COH and our market in general to follow suite, at least trade higher for the next day or two.

I am not saying COH bottom is here for certain as nobody has a crystal ball. Should market start plunging again, I'll cut my long and switch to the short side. The attitude is to listen to what the market says, analyse what's printed on the charts and take action accordingly, not pay attention to what others say about the market.