(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.
so are you short VHPM based on todays trading?
ReplyDeleteiv,
ReplyDeleteNo, 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,
ReplyDeleteVPHM 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.