actio-et-reactio
Balance is but a brief transition between extremes.
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Wednesday, January 14, 2004
Wednesday: Part 1 ( Reversal rebound) fulfilled. Working on Part 2
The RSI Reversal set-up follows-through, with a rebound @1115 (projected 1112-1117) The next barrier is 1128, which the blue 60m fork easily projects with a target of ~1132.
HOWEVER, should price not break the 1128 and reverse, a Negative Reversal is set up, which would feed Part 2 of my favored scenario: a double top set up with a Negative Divergence on that rebound. This creates a good setup for a tradeable *correction*, ie, something greater than the 1-2% pullbacks of late. This would allow the market to regain strength for another run at more highs, or at worst, further consolidation at relative highs, both of which are constructive in the longer run.
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Labels: chart-analysis
At last, over the rim
of the waiting earth
the moon lifted with
slow majesty
till it swung clear of the horizon and rode off,
free of moorings
- Kenneth Grahame,
The Wind in the Willows
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