08 November 2012

S&P500 : Daily SHS Top

  • Gaining confidence on negative view here after poor price action of past few days.
  • On the daily chart : SHS NL at around 1397 (lowest candle body). Top at 1467 (highest candle body). = Measured objective at around 1327.
  • Last night's close at 1389 confirms the NL break.
  • Initial short made at 1421. Original stop at 1436 now lowered.
  • Awaiting 2nd consecutive close (ie tonight) below NL to consider adding. Shorting equities has not been an easy trade so want to be careful here.
  • [If above works, then on the weekly chart, we would have broken the uptrend line which stands at around 1385 this week].


Anonymous said...

Have you considered that there is a strong support at 1385, which is also close to the measured move target of the triple top on the daily (the complex head of the H&S is a triple top). Selling straight into support? You may want to wait and see how the price behaves at the support.

Taichiseal said...

Yes. Definitely. As I subsequently tagged on to the initial post, 1385 is where the weekly uptrend line support is. Hence not going to rush into this. See how it behaves when tested first.