Featured setups from Monday February 7, 2005 closing data symbol scan
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Notes for the Day
Yesterday markets remained fully in pause mode – for much of the day it felt like the bias remained positive, however as the day wore on buying support appeared to diminish. See also today’s note on Market Direction.
More setups will be posted once we get a feel for the day.
Long Setups
General common strategy: Unless noted otherwise, buy stop just above the “high” value, with an initial protective stop at the low value of the bar, not below the bar.
Retracement or Pause in Up Swing / Up Trend
SBC may have a “failed bear flag” setup here, now forming a bull flag on the daily. Trigger is yesterday’s high plus a tick or two – hold only if price clears the two day high and closes above yesterday’s high by a comfortable margin.
CMCSA – following the piercing line pattern of last week, a pause now presents a chance to try a long here.
Short Setups
General common strategy: Unless noted otherwise, place a sell alert at or just below the low of the setup bar, and look for the first failed intraday bounce after the low has been broken. What we are looking for is price to push down, bounce a little, and fail again – this is where we want to get short.
Retracement or Pause in Down Swing / Down Trend
TYC – bear flag forming, follow up for another day or two max if it does not trigger today.
05.02.08 09:27 #