Matt posted the triangle this morning. I was just playing with
the chart. First I threw on the Fibs and saw that the whole rally
back stopped dead at the 38 Fib. Then I drew the dotted TL and it
would appear that the SSEC broke it's TL and is backtesting it now.
The backtest, if it fails and proves to be a bear flag, may tell
the tale before the smaller triangle breaks. It actually looks like
an interesting swing short here on the backtest where you can keep
your stop reasonably tight.
You might also note that the the mid '10 lows are a 61.8
retracement of the move up. So which consolidation is it
really? I don't know but at least we see the price
consolidation. Draw a horizontal line at the most recent low and
watch where it goes back through. That would be one line in
the sand for me. Otherwise I have to start looking at
resistance above. The most important thing is that you see
the triangle consolidation of price and figure out where your trade
is. Not worth much but I hope it gave you a slightly
different view.
SSEC weekly, Matt's chart with more lines
Posted by puma on 14th of Jul 2011 at 11:12 pm
Matt posted the triangle this morning. I was just playing with the chart. First I threw on the Fibs and saw that the whole rally back stopped dead at the 38 Fib. Then I drew the dotted TL and it would appear that the SSEC broke it's TL and is backtesting it now. The backtest, if it fails and proves to be a bear flag, may tell the tale before the smaller triangle breaks. It actually looks like an interesting swing short here on the backtest where you can keep your stop reasonably tight.
Totally missed that you had
Posted by johnc on 15th of Jul 2011 at 07:55 am
Totally missed that you had your trade set-up already figured out. I'd delete my post if I knew how.
You might also note that
Posted by johnc on 15th of Jul 2011 at 07:29 am
You might also note that the the mid '10 lows are a 61.8 retracement of the move up. So which consolidation is it really? I don't know but at least we see the price consolidation. Draw a horizontal line at the most recent low and watch where it goes back through. That would be one line in the sand for me. Otherwise I have to start looking at resistance above. The most important thing is that you see the triangle consolidation of price and figure out where your trade is. Not worth much but I hope it gave you a slightly different view.
SSEC on more trendline
Posted by fehro on 15th of Jul 2011 at 01:00 am