Don't hate it, just trade it! That's my motto from now on.
We just keep pushing up on little to no momentum.
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The 60-min chart looks like it may be setting up for another momentum push higher
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We gaped down this morning, but as price was testing the lows TICK wasn't overly bearish. We filled the gap, put in a higher low while the TICK put in a lower low, giving us a bullish divergence. We did chop around the previous day's close before continuing higher. Each TICK back to negative territory was a good opportunity to buy the dips.
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We based around the highs before breaking down. Again, price tested the selloff-lows on a higher TICK, taking us higher into the close.
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Here's the 5-min chart. First, the
Support (green horizontal line) & Resistance (red horizontal line) envelopes. Price touched our Support line, but the following 20-minutes following the opening low couldn't test that level again. We can see also how the ensuing highs through the day were showing a bearish momentum divergence. The correction off of the highs (nervous selling) put in an ever so slightly lower momentum reading, giving us a subtle
slingshot setup long. Finally, we can see the bullish momentum divergence on the lows around 3:30 p.m. I'm not sure whether the last 10-minutes was a short-squeeze or aggressive buying.
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Meanwhile:
FCX based along my support envelope before breaking down to the previous day's gaping candle.
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Today I
owned RIMM. I mentioned yesterday being on the look-out for a long setup above $77. $77 was blown through early and continued on until it flagged at my resistance envelope line. Price ran to an even $80, touching a previous support level on the higher time frame.
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The highs were met on a decaying momentum divergence, also a Head & Shoulders setup. The retracement out of the H&S breakdown found support at a 50% Fib. retracement (not shown).
4 comments:
Did you take the short in RIMM too?
Not only did I take the short, but I covered and shorted AGAIN after the retracement up. I owned it! :)
Great!
Great trade Todd! Missed RIMM and ARE over 40.
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