Sunday, August 24, 2008


I wish I had caught this on its downturn. But maybe I can be there should it turn up. I have posted two PnF charts, one traditional and one log. The traditional has yet to return a reversal; however, should it show a reversal, a bounce should occur, especially considering the amount of time the drop took. In any case, the log PnF still shows a bearish trend, with a false double top. It is currently forming a double bottom. If the bottom holds, this could form a reversal. Confirmation would occur if the price rose to 39 or above, and if it held above 37 or so. Askstockguru shows a good support level at 36.63, so there is a decent possibility for a reversal. RSI is still low, below 30. I wouldn't enter this trade at the moment. Wait for more confirmations. Of course, if you do choose to enter the trade, put your stop no lower than 36.

Good trading. Take responsibility for your actions (and practice good money management!)


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