When a trader/investor becomes startled by his own shadow, the game becomes even more difficult to play.
Three taps and out of the Barron's gap, approximately 3.95 was achieved. A new line in the sand has been drawn at the 2009 congestion, approximately 4.5-5.25.
Technical analysis, at least from my perspective, is similar to geology. It is a study of time and pressure less a whole bunch of zeros.
A bullish resolution of the 2009 congestion zone will be achieve either by attrition, three taps and out heuristic is very common, or a sign of strength. A sign of strength would be a jump of the zone on a large spike in volume.
Cumulative trend energy, or REV, suggests that the trend energy is building strength for a break. This is indicated by the REV already above the 2009 congestion highs and a rising channel. As long as trend energy continue to build and the fundamentals support, the 2009 congestion zone will eventually be exceeded through attrition. So far there has been two taps.
0 comments:
Post a Comment