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Watch That Triangle!
A triangle appears to be forming in the S&P 500, and also in the Dow Industrials. We always sit up and take notice when a triangle forms, because it almost always resolves in a major price move.
A triangle is composed of not fewer than five waves (a-b-c-d-e) which ricochet like a pinball between the upper and lower trend lines of the triangle. When the “e†wave is complete at or near a trendline, prices will bounce away from it in the direction of the next major move. As prices exit the triangle at the opposite trendline, we can measure…
24Oct2008 | William Kurtz | Comments Off | ContinuedBroken Trends & Symmetrical Triangles?
A trick or two from the technical vault…
While I certainly appreciate a good fundamental overview of a particular stock to support a bullish or bearish argument, one cannot gain a greater understanding of timing mechanisms without honing in on the technicals of a stock.
In the chart of Schlumberger (SLB:NYSE) below, you can see two key technical setups, the first being the basic trendline. See how shares snuggled close to the line. Once the stock bounced off two consecutive uptrend points, we can then plot its trendline. In October, the trendline was broken and you could have immediately taken profits and…
30Jan2008 | S. Oakes | Comments Off | Continued
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