The Test of Top continues on into a fifth day today – will it finally clear, or finally break down? Either way, we’ll be happy to be clear of the range.
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Long – swing traders off daily chart – by above the first retracement that shows up above yesterday’s high.
Our experience is that such congestion zones tend to last between 5 and 8 days – this one feels like its ready to decide – no doubt by the end of day Monday we’ll have a result, like it or not. There is reason to believe direction is up, as support has been holding the last three days:
Tests of Tops can and do switch direction on a dime – here we see where support must hold, and the likely paths out of this range. We merely need to be ready to act.
QQQQ – within a large triangle but in this case worthy of stalking for a long-side trade.
IWM – Russell 2000 ETF, similar to SPY.
Golds – reminder to follow up on Gold charts today – its likely to pop some at the open, don’t buy blindly, forex markets may settle down and the US$ might just surprise us yet. However – there is support for Gold which stronger Gold stocks have been telling us this for days now.
NEM
AEM
ABX and FCX have both been extremely strong. I hold this one, from the entry point marked, and remain surprised at its relative strength.
05.03.04 09:27 #