Carving Out A Classic
The Qs carved out a classic tradable bottom this
morning on picture-perfect follow through to price vs. stochastic
divergence on both the three-minute and hourly time frames. Combining such
formations with the approximate Globex session low and key Fibonacci retracement
levels gave you a textbook recipe for up to $0.70 in profit potential.
Volatility and liquidity have once again been strong and have provided a
wonderful backdrop to the intraday trade.
The Qs are testing key hourly resistance as we approach mid-day, and I’m
expecting an immediate battle between the hourly divergence strength and
downtrend support (resistance on longs) which will need to play out over the
next few hours. Strength in Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating), which reflects over 10% of
the QQQ holdings, has also helped contribute to the rise.
Thursday February 7, 2002
12:00 PM EDT
Good Trading.