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Tuesday, November 16, 2010

midpoints

Here are a couple of 2x-bar midpoints that were tested today. 
11/10 RIMM showed a 2x momentum bar
This morning price gaped down within $0.03 of this midpoint and bounced strongly, filling it's gap within 5-minutes.  Once the intra-day momentum bar (second 5-minute candle) went beyond it's 50% midpoint, it became apparent that the opening drive was just a short covering.  Price returned to this 11/10 midpoint and measured a 50% extension beyond it:


V exhibited a 2x momentum bar back in October, however, it was already tested once before:
This morning we gaped down and an attempted gap-fill failed, which coincided with the 10/13 midpoint.

Most recently, OXY had a strong session 3-days ago
This morning a gap-down lost momentum right around this midpoint level, leading to a short shakeout

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