SSO, SPX And SLW

The show was over for The Bears right at the opening gong. They opened the SSO just about smack on the lower trendline of the putative Bear Flag, which could end up as a Rising Channel, and that was the low of the session.



In the SPX, the session was a "possible" Bullish Hammer. In both of these charts, the lower trendlines now are validated trendlines with yesterday's third "hit," confirming that they are support. If they get taken down, it suggests at least some kind of retest of the lows.



SLW put in a low at 40.00 just after the opening gong, but that wasn't the session low. It rallied and put in a Symmetrical Triangle, broke it to the downside, then tanked to 39.11.

Coming off that low, SLW put in a Bullish Morning Star (circled), followed by a Bull Flag (in yellow). I liked that Bull Flag and bought 5,000 shares at 39.50. The flag broke out at 39.62, putting an upside target of 40.00 IN PLAY, which was exactly the early session low (horizontal red line).

39.81 - High of the Bull Flag
39.43 - Low of the Bull Flag

39.81 - 39.43 = 0.38 points of upside on a breakout, which was at 39.62.

39.62 + 0.38 = Target: 40.00 IN PLAY

Notice that as SLW rallied to the target, the EMAs were inverted and the 34EMA was right there, at 40.00, constituting DOUBLE RESISTANCE. I sold my 5,000 shares at 39.95 as SLW rallied into the target (it got to 39.98) because:

1. "Take profits when targets (40.00) get MADE"
2. 40.00 was horizontal resistance from the early session low
3. 40.00 was 34 EMA resistance
4. 40.00 was TRIPLE RESISTANCE from the broken Rising Channel in this 10-Minute chart...



...where the rally failed at the White Arrow. "Former support 'should be' resistance on a retest," and it was. That failure suggested a retest of the 39.11 low, for an attempt at a Double Bottom.



Coming off the failed retest of the broken Rising Channel, SLW also broke below this Rising Wedge (in white), which gave a further suggestion of at least a retest of 39.11. SLW stumbled around some at the 39.11 low, but did manage to put in a Double Bottom at 39.05, then...



...rallied back to 39.98 exactly, temporized for just a bit, then broke out to the upside. Very nice play from The Bulls, however...



...this is a rally into Channel Resistance again (the white arrow), so The Bulls need to come out onto field this morning loaded up with spinach ;)

A downside takeout of yesterday's 39.05 low and also a takeout of the last low in the Channel (the white up arrow), which was validated support, would look like a completed H&S Top, similar to the little yellow pattern to the left of the chart.



Gain: $2,200