(Click On Chart To Enlarge)
Post Fed Announcement:
"The SSO just printed 29.61, the bottom of the wedge, which is the minimum downside expectation off the wedge breakdown."
That was just about the low off the Fed announcement. The SSO bottomed at 29.50, which turned out to be the bottom of a Bullish Inverse H&S pattern! The Right Shoulder (in yellow) was a Symmetrical Triangle, strengthening the pattern, and look what happened when it broke out!
From this morning:
"If the SSO can take out the morning high of 30.75, that would put a target of 31.89 IN PLAY. (30.75-29.61 = 1.14 points + breakout above 30.75 = Target: 31.89)."
The SSO rocketed higher and the 31.89 target got MADE, and more. Keep your eye on the birdie, huh?! Wow!
6 comments:
Excellent calls today! I've been watching your blog for a few days now and I am impressed by your accuracy. Do you usually stick to short time frames (hours) or do you ever venture out (days, weeks, etc.)? Keep the posts coming.
nerdstrom,
Thanks. In the recent volatile environment, I've mainly been trading the SSO/SDS short-term.
Just wanted to say thank you! I'm quite novice and just starting to get my head around so your explenations have helped a lot understanding the charts.
P20,
Thanks for the feedback. I'm glad if any of it helped.
If you're interested, this link to "Chart School" at Stockcharts.com provides some very good basic information on chart patterns, trendlines, support and resistance, gaps and gap analysis (you'll find the latter below the candlestick information).
The Japanese candlesticks are a little more esoteric, beyond the basics. I'd suggest getting the basics down first, only if you're interested, of course.
Here's the link. Good luck to you!
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis
melf, thanks for your precision work, it's so welcome! There are lots of small gaps up higher on SPX if you count on a daily chart close to the next day's daily high. Is that a correct way to find a gap?
There are lots of small gaps up higher on SPX if you count on a daily chart close to the next day's daily high. Is that a correct way to find a gap?
Vem,
Yes. For example, the Friday, October 3, low was 1098.14. That also was the low for the week.
Monday, October 6, opened at 1097.56. That was the high for the day and also the high for the week. That created a small gap on both the daily and weekly charts.
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