Saturday, January 24, 2009
As of Thursday, the TRIANGLE WAS OPERATIVE. By Friday it had broken out. By 1 PM on Jan 23, it broke out to 8450, Cleanly thru the upper RED Line.It then closed inside the triangle @ 8385. Reason , experience and basic Techncial Analysis would expect, the price to dribble down OUTSIDE the triangle riding the RED Line downward until the upward move begins. that said, the bias is for the WLSH to break upward out of the triangle
NOW if you assess the POSITION and direction of the TREND and MOMENTUM >>INTERPRETING MACD as TREND, and WM%ofRANGE as MOMENTUM, we see that the WLSH has moved out of oversold area of the WMS%R, but has room to run. We interpret the MACD as TREND, and see that its trend is positive, its downward wiggle flattening and you can visualize HOW a "fishook" up turn could manifest. The most recent chart shows three peaks, and the third peak occurred about>>> 1 PM on Friday. What exactly happens on MONDAY may be a mystery, but I'd expect by the close of business, a wee bit better upside resolution. Its an expectation, not a projection. Whatever form a rally might take, isnt as important as looking at TREND, MOMENTUM and POSITION, and not being freaked out by the TALKING HEADS.
Whatever you can absorb about APPLYING Technical Analysis from the above STOCKCHARTS Graphics will serve you well if you learn to apply the lessons of TREND, MOMENTUM and POSITION.
Have a great day, whatever you are doing.