This Is Why Thursday Could Be A Key Decision Day
The
Dow Jones and S&P 500 are approaching an immediate decision on the
60-minute charts. The immediate trend is down, and as of today’s close the rally
of the last couple of days is equivalent in price with the previous rally in
this downtrend. Mix that symmetry with a solid Fibonacci price resistance zone,
and we have a key decision in tomorrow’s session. So, if DIA or SPY trades above
the resistance zones defined in the two charts below, then the longer term
uptrends are ready to reignite. However, if this symmetry and Fibonacci price
resistance is respected then we could roll over and continue this immediate
downtrend.
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To update
Monday’s column on the Martek Biosciences
(
MATK |
Quote |
Chart |
News |
PowerRating) short setup, I took the short and the stock has reversed against
me. On the chart below I have identified key resistance that needs to be held
for this short trade. Otherwise, I’ll be stopping out for a loss. I’ll keep you
posted.
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Let’s add a new long set up to
the mix. It is called Liquidmetal Technologies
(
LQMT |
Quote |
Chart |
News |
PowerRating). The stock has completed a Bullish Butterfly on the daily chart
below. Mix that pattern with a Fibonacci price support zone AND 6 time cycles
calling for a potential reversal between now and July 8. My stop on this long is
below 4.40.
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Have a great Fourth!
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