(Click On Chart To Enlarge)
From November 21:
"On a rally, resistance is:
10.88 - The 200 Day Moving Average
10.93 - The broken neckline (rises 0.0477 each session)
11.20-11.23 - The gap from yesterday morning
11.60-11.63 - The broken bottom of the Descending Triangle that gave us the 10.84 target that got MADE yesterday."
On Friday, VPHM put in a mini-Double Bottom at 9.65 basis the intraday chart, filled most of the 9.57-9.88 gap, and has rallied back to the "bottom rung" of resistance, the 200 Day Moving average, which has moved up a little, to 10.90. Yesterday's high was ju-u-st a tad below that, at 10.86.
The next "rung" on this ladder of resistance is the neckline of the H&S Top, the slope of which is rising 0.0477 each session, so it comes in today at 11.026. Above that resistance is the 11.23 gap, and then the 11.60-11.63 bottom of the broken Descending Triangle (the little pattern in black).
So, VPHM has its work cut out for itself right here, because "former support 'should be' resistance on a retest," and its got several levels of resistance to overcome. The first order of business is to stick a CLOSE above the 11.026 neckline. A CLOSE above the 11.23 gap would be better still.
3 comments:
so are you short VHPM based on todays trading?
iv,
No, but I'm considering it if gets back to the neckline (11.074 for Nov.26) - 11.20-11.23 gap area. It got to 10.89 yesterday, a penny below first resistance at the 200DMA.
iv,
VPHM currently is at the 11.20-11.23 gap. High so far is 11.24. It's looking strong, so I'm going to pass for now on shorting it.
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