Hi HankMoody,Here's my take on QBE, for what it's worth.The...

Hi HankMoody,

Here's my take on QBE, for what it's worth.

The chart below shows three pitchforks, with the short term blue fork and the downward sloping red fork being the two of immediate interest. Note the significance within the red fork of the internal 0.25 lines and the number of touches price has made to both of them over the life of the fork. Both these lines have marked distinct levels of support and resistance. This is significant because within the blue pitchfork, price rose strongly off the lower tyne until it reached the red 0.25 line where it failed to penetrate and close above that line over the last three sessions, the last of which finished in an indecisive doji on reduced volume.

In the short term I believe that price will either retest this red 0.25 line as resistance and gap up through it on stronger volume, or more likely, will follow one of the two paths I have marked with green arrows, back down to retest the support of the lower blue tyne before starting a new leg up. The retest of the blue support tyne (whenever it occurs) will offer an excellent entry position, or a great chance to top up for those who already hold.

Overall, I think QBE looks very strong in the medium term and given that price always tries to return to the median line of the current pitchfork, there is a lot of upside to be gained from any such retest level before it reaches the blue median line, as the first significant target.

Good luck.

Regards,
Bones