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楼主 |
发表于 2008-5-16 19:39
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Mount 214?
Here's some weekend food for thought... I think the bounce and weekly close above 10 and 20 day MAs, 211 previous resistance, and within the channel bodes well short term. Downside momentum waning for now. Friday before a US holiday weekend and only modest losses for the day while up on the week. So maybe Monday or Tuesday we test 214.
My plan is to go long two orders on a break above 211.9 or bounce off channel bottom/10-20 day MA for a test of 214. First limit 213.85, second limit 215 or higher. Stops below Friday low of 210.30. Cash out and go short on a failure. On a break of 214, move stop to 213s and open another order if things look good. Go short on a break below Friday low 210.3 for 200 (1000 pips!). Watch out for a developing trendline off the 205 low, however.
Whether we can break 214 or not is questionable. Either way I expect some major moves. Holiday lightened volume is a double edged sword here, so we could push through more easily, or a rejection could send us reeling. Be careful... Three tops in that area...
Keep in mind the broader picture here... looking at dailies we see a similar bearish continuation pattern playing out as before, so in my book it is a crucial pivot point for determining if the recent up move or the entire correction for that matter is done, or if we continue zig zaging up to 217.47 fibo. On the other hand, notice the major head and shoulders pattern. Often price rallies back up to the neckline before heading lower again, which just so happens to be... you guessed it - 217ish. If we fail, however, look out below!
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