devilmaycare, (osh)
I have drawn blue LT, cyan MT and red ST forks with a green trend line. The red fork is pinned to a deflection low in the blue circle (may not be real obvious). It's pretty clear that blue frames the longer term trend, and that red is parallel to the blue fork. This equity has had a pretty good run and is now approaching the resistance tines on the cyan fork and the red fork. The RSI(13) is topping, and the Slow stoch (15) is topping. That does not mean price will retrace imediately because all the forks are facing upwards and a retrace would definitely be counter trend with this stock.
What it does mean is that you need to have your stop loss plan in place and consider where you would want a re-entry if it did retrace, or a plan of how you would tell that it had resumed it's advance, if you were still interested. If your going to play with this one, you should learn how to draw straight lines. I would be watching for a rejection around the top red tine, as this one tends to retrace before it gets to the blue ML. If it gaps through the ML, it's gonna fly hard (new highs brings in the big traders) and it could be one of those gap and crap equities if GS & UBS pump it hard enough on the open, so be ready.
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- weekend charting 29 30 august 2009
weekend charting 29 30 august 2009, page-60
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