Monday, December 3, 2007

QXM: Struggle At Resistance




( To Enlarge Chart, Click on it, then click on Open when prompted. At the bottom of the chart, click on the fourth icon from the left, then enlarge your screen).


QXM rallied to first resistance late last week, and failed. It needs to get above the down-sloping trendline and above 8.58 (last support) to turn neutral.

2 comments:

bauz said...

Hi little elf. Here I am following in your footsteps trying to learn ...It looks as if the Dec increase will be larger than the calculated slope of 0.12. Today the bear flag resistance was broken and we should be aiming for the low 9.90's i.e.much higher than the slope projected 8.12. Am I reading you correctly?

Melf Elf said...

(Today the bear flag resistance was broken and we should be aiming for the low 9.90's i.e.much higher than the slope projected 8.12. Am I reading you correctly?)

bauz,

Yes, you are.

The slope of the monthly trendline is 0.12, as you say, which comes in for December at 8.18.

But, just to be clear, that isn't a projection. That's just where monthly support "should be" for the uptrend to remain in tact.

That can get violated to the downside intra-month as it did in November on the drop to 7.81, but we'd like to see it hold on a CLOSING basis at the end of the month. Otherwise, it likely will bring is sellers on the breakdown.

Your 9.90 is right where the 10.08-10.00 neckline comes in today, December 6 (see the XING chart posted the other day). It's at 9.912 today, and moves down at the rate of 0.0038 per day.

The Bear Flag resistance was broken to the upside yesterday, putting an upside target of 10.05 IN PLAY, but that target is ON HOLD since we didn't close above the 8.93 breakout. The close was 8.86.

The target goes back IN PLAY if XING rallies back above the top of the Bear Flag, which is at 8.99 for today, December 6, but we need to be aware of that neckline resistance, now at 9.91, particularly since rallies against the trend are less likely to get MADE.

The short-term and intermediate-term trends are bearish.

Good luck!