Hello, cowboy and sharpie. Good to hear from you. Don't know if you follow the The Dow, but it made a rare candlestick formation on the weekly........a bearish Stick Sandwich. I noticed it on Sunday. It could be the reason the market was down yesterday. It takes one indice to lead, and the others will follow. Of course, stocks will follow the indices.
You are welcome. I forgot to mention that there is candlestick support at 24.59, but I believe it will break; if not the first time, then the second time.
A Symmetrical Triangle is made up of smaller chart patterns. They are often H&Ss and IH&Ss. Strong possibility the IH&S you mentioned will be contained by the Symmetrical Triangle.........for now anyway.
Go to a 2 yr weekly chart. It will filter out all the noise. I use a candlestick chart. Now draw your trendline. You should have 2 touches from 6/26/13 at 17.75 to 20.03 which happened (if I remember correctly) 2 days ago.
Now draw your trendline at the top. You should get a Symmetrical Triangle chart pattern somewhere between 20.03 and 26. These figures at this time are your support and resistance areas for this chart pattern, but these figures will change as the chart pattern is formed. The bottom trendline will move higher and the top trendline will move lower until one of the trendlines breaks.
Inside the Symmetrical Triangle, there will be smaller chart patterns. I mentioned in a previous thread that a Head & Shoulders appears to be forming. This pattern is inside the Symmetrical Triangle. A larger chart pattern will usually contain a smaller chart pattern until eventually the smaller pattern breaks thru.
Gaps are filled 95% of the time so there is a strong possibility the gap will be filled. GL
On the 5 d chart, there is a H&S. This is a bearish chart pattern; and if it plays out, target is 24.
It appears a H&S is forming on the 3 mo d chart. If it completes and plays out, target is about 23. However, it still needs to move up to form the right shoulder. There is an open gap at 23.60 which will likely be filled.
Thanks sharpie. The RSI forms chart patterns such as a Double Top or H&S which may not show up in the stock's price pattern. Look at the 6 mo d chart, and look at the RSI 14. Looks like a possible H&S is still setting up at this time. We'll see what happens today.
A possible H&S chart pattern appears to be setting up. This is a bearish pattern. If this pattern plays out, target is 21.61; however, the 50 DMA presently located at 22.54 could keep it from reaching that level. GL
Per article I read 2 days ago. By the way, anyone see the Yahoo headlines this weekend?..... "As the stock market comes back, commodities tell a scarier story." Will commodities be the canary in the coal mine? Are they warning us
You are right....... ma's are lagging indicators If you use the 5/9 EMAs, they hug price action a little tighter. I taught myself to read Japanese cs's. They are leading indicators. I look at those first. Then the 5/9 EMA to see how it is acting.
Also be aware that if price action moves too far away from the ma's, the stock must revert to the means to allow the ma's to catch up. The stock will either move sideways or move down to meet up with the ma's.
By the way, thanks to you and cowboy for your reads. Keep it up.
Sharpie, I tried to respond an hour after you posted but was blocked.
First of all, I stated previously that the Fed has created a parabola in the markets. A parabola will always collapse. There is no exception. I suspect it may happen in May or June.
You should also pay attention to the moving averages. The bullish 13/34 EMA indicates SLW is uptrending. A bearish 13/34 EMA indicates a downtrend. I believe the gaps at 20.37 and 17.78 will fill when the 13/34 EMAs breakdown.
Technically, to fill a gap, price action of a following or future following candlestick must revert to the close of the previous day. (Sometimes, gaps are not filled the following day and may take days, weeks, months or even years to fill, but they are filled 95% of the time.) If it only reverts to the previous candlestick shadow, then it closes a void on the daily chart and some traders consider this to be a gap fill, but actually it is not. The gap remains open until at some future date, it is filled.
If you cannot locate a gap on your chart, you can go to the yahoo historical price list. For example on Feb 10, SLW closed at 23.38. The low on Feb 11 was 23.56. The difference between the two is 18 cents. Therefore, you have an 18 cent gap. Gap size matters. The market can forgive a 3 cent gap for SLW, but a 3 cent gap on a dollar stock is considered to be large.
Here is a list of the gaps:
23.38/23.56 = 18 cent gap
22.62/22.82 = 20 cent gap
20.37/20.71 = 34 cent gap
17.78/18.01 = 23 cent gap
All of these gaps will be filled at some future date.
Agree with you, Sharpie. Sold @ 24.51. SLW has some gaps to fill, but do not have time to list. Will be back this evening to post them.
There is an Inverted H&S chart pattern on the 3 mo d chart. You can see it better on a 6 mo d chart. This is a bullish pattern. Target is about 26.65.
SLW still has a bullish 13/34 EMA crossover. This is a good thing. GL
The Fed has created a parabola in the market. A parabola will always collapse. There is no exception. I agree, this will end very badly. When the market goes, it will take the world economy with it.