Sunday, December 9, 2007
Sometimes Gaps Get Left
The gap on the 60 minute candle chart never got tested for support. I really expected it to happen early last Monday morning but it did not materialize. Instead, early last week the profit taking that started when the market touched 1489 continued but found support quickly along the 35 period ema trading band about the same time it crossed the 140 period ma. That led to a test of the neckline on the Reverse H&S pattern which was easily put in the rear view mirror on Thursday. The old Bull/Bear war zone of 1490 is behind us now, once again look for that area to provide support. If so, expect the target price off the reverse H&S pattern to get hit very soon. Gary over at Between the Hedges as been saying he expects the "Mother of all Short-covering rallies" to materialize. I tend to agree and believe it may have already started. Thanks for stopping by and you can check out my stockcharts.com public list at RedDirtTraderCharts .
Labels: candlestick charts, major indices, sp500, stockcharts, technical analysis
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