Trading A High-Probability Reversal Pattern
Combining time frames often
yields results with edge when you can find a contra-move on the smaller time
frame into an area of technical significance on the daily chart.
In today’s trade, one such combination of the
5-minute chart and the daily perspective was in St. Jude Medical
(
STJ |
Quote |
Chart |
News |
PowerRating).
The group, which includes MDT, BSX, and GDT has been under recent pressure,
and although STJ was the strongest of these issues, it too was showing signs of
weakness. The issue had already formed a lower-high double top, and now the
issue was facing key resistance in the form of price and Fibonacci retracement
levels, after pulling back from its recent lows, in a contra-trend rally.
11:11:37
Intraday Reversal Alert
St. Jude Medical (STJ)
is setting up in an intraday TrapDoor pattern on the 5-minute chart, after
testing daily chart resistance–up .72 at 74.95.
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It looks like all was not well with our friend
St. Jude, after all.
Chris Tyler