Goldman: Falling Wedge Breakout

From yesterday, on Goldman:

"Given ... that we've got the "double threat" (160.04 and 160.123), if I hadn't covered my short on Tuesday, I would have yesterday. That certainly doesn't mean that Goldman will break out to the upside here. It just means that I really wouldn't have liked my chances on the short side..."

Goldman did break out to the upside at the open, at 160.28. After the H&S breakdown on Monday, the last thing in the world that I expected to be doing this week was to be re-entering on the LONG side of Goldman, but hey, "Want what Ms. Market wants."

I've been getting pipped at the post on some of my orders lately, but my order at 160.13, just above the 160.123 neckline, fortunately got filled. The session low just after the open was 160.10, just three cents below my bid. I almost put my order in at 160.05, the Rising Wedge breakout, and if I had, I would have been pipped at the post again by five cents. Whew!

That 160.10 low also was a validation of the neckline, within two cents. Instead of acting as resistance after the H&S Top breakdown, "as it should have," the neckline became immediate support after the Falling Wedge breakout at yesterday's open. Players were lined up there wanting the upside technical breakout, like I was.

This Falling Wedge showed up in the 5-Minute right after the breakout, a fractal (repeating pattern) of the Falling Wedge in the daily. The upside breakout of this wedge put the top of the pattern, 161.98, IN PLAY. I sold my long a bit below that, shortly after which the 161.98 target did get MADE.

Also from yesterday:

"If Goldman breaks out of the Falling Wedge, above 160.04, then gets back above the 160.123 neckline, that would suggest that it wants to make a bid for a complete gap fill of Friday's 162.73 close. The 20 DMA is up there, too, currently at 162.81."

The gap from 162.73 got filled in early afternoon trading. The high on the session was 162.84.

Gain: $1,700. Combined with Tuesday's $1,700 gain on the short trade, that's a gain of $3,400 on the two Goldman trades, so it's been well worth the time that we've spent identifying the patterns and the trendline/neckline data points.