Process Of Elimination
The Qs have extended its
hourly uptrend this morning with the
three- and 13-minute time frames yet again collaborating nicely to provide at
least one solid extension entry this morning as noted in the charts below. The
initial surge aside, opportunities have been rather scarce as market
participants digest the recent run, and I’ve again shifted my focus to the
larger picture to try to make some sense of where we are. Perhaps a process of
elimination will help, so here’s what we do know:
Weekly: We’ve
bounced from an oversold lower Bollinger band while stochastics remain at
relatively oversold levels which haven’t yet reacted to the single-bar climb.
Daily: Now
officially on the fence with price at its 15-MA and stochastics mid-band.
Hourly: Has
served as the best recent guide as we continue to uptrend, yet is still
teetering on a delicate balance of diverging price vs. stochastics vs. what has
been strong trend support. In other words, is there fuel left in the tank, or is
selling only profit-taking which will bring in new longs if supports hold? This
time frame continues to be key in my view during the current period of
digestion.
Back to today’s action, note the early cup-and-handle setup and look to the
support angles of the 13- and 60-minute going forward to guide the afternoon
trade.
Wednesday February
14, 2002 12:00 PM EDT
Good Trading!