Thursday, May 10, 2007

Still within a triangle

Triangle continues 4130-4140 res line held , now for 4030 support line.
Wb/w4 or terminal???
The same pattern is allowed to break up or down
No hard and fast rules.
Probability lets say 55:45 for triangles in direction of entry. Since entry into triangle was upward, favoring exit to upside.
If it breaks up looking for 4240-4400-4440-4692-4920 etc
If it breaks down looking for 3970-3915-3900-3850-...... . Lets not go there
I am still long :). Tech still weak so its mostly up to telecom/oil/banks/metals to drive this market higher. Pharma flattish, fmcg also flattish but could turn up.

Also keep in mind triangles often show up as the last leg in a local move. ('limiting triangles' setup for good shorts after the move ends, while the non limiting triangles could go anywhere. Read neely for details)

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