FAZ: Rectangle Targets And Resistance

I forgot this morning to put The Rectangle target that was IN PLAY. Two ways to calculate this since the highs and lows are disparate. Take the "lower high" (44.90) and the "higher low" (34.80) to get the more conservative target, which I like to do. That's 10.10 points of downside, subtracted from the 34.80 low = Target: 24.70 IN PLAY.

The "higher high" (45.02) minus the "lower low" (34.50) is 10.52 points of downside, subtracted from the 34.50 low = Target: 23.98 IN PLAY.

This morning's low was 23.88, ten cents below the low end target.

30.12 was the high, prior to yesterday's smackdown, so that's where we can expect resistance, especially after a rally of 27% of the morning 23.88 low. On a selloff from a test of 30.12, the breakout above 28.95 is first support.

"Are you paying attention YET, Melf? Slap! Slap! Slap! LOL."


Well-ll, I'm trying to. I put in an order to short at 30.05, below 30.12 resistance, and covered at 29.02, above 28.95 support, for a gain of $2,500. That takes a "little" of the sting out of NOT shorting yesterday afternoon ;)