Yesterday, as we gapped down into this range we saw a bullish divergence in the NYSE TICK, leading price higher. Later in the afternoon yesterday, price was very range-bound at these lows while TICK couldn't drag price any lower. This morning we found ourselves back in this range while the TICK again acted in a bullish manner, while this afternoon price V-bottomed when the TICK tagged those negative boundaries.
This morning gave us a cup w. handle setup and two "First Cross" entries (green and red vertical lines). The long "First Cross" entry coincided with a retest of the break from the cup and handle breakout (price broke out from the cup's rim, came back to re-test the rim's price and continued the measured move).
The 15-min chart shows the refusal of price to close the gap left from last Thursday. The 20- & 50-EMA aren't giving up their bullish orientation.
It looks as though the bulls have successfully turned back any further bearish retrace. It would seem testing the upside is desired from here.
2 comments:
If I ever trade equities or stock futures, it will have been because you inspired me with your posts. Maybe I'll get good enough to join DT's RO, so I can make snarky comments at him about being a chambermaid...on second thought, maybe not. Hard to give up one's first love, what?
Keep the fires burning. Awesome blog. Seriously.
Thanks so much for the kind words. If the fires are kept burning, it's due to people like you stoking them.
I wish you much luck in all of your trading endeavors.
-todd
Post a Comment