Thursday, November 20, 2008

Support & Resistance

The $SOX got a pop in early trade, a technical bounce. INTC and LCRX are the only semis in my WL and LCRX had a much nicer chart. Place the fib. retracement lines from yesterday's high to the ORL for stocks that gap. The trigger bar is a NRIB at the base of the 38% retracement level. I took a partial at $16.50 and exited the balance at the full retracement.

Last Thursday's low (blue line) did not hold as support as noted in last night's technical post. That broken support level now becomes resistance. The S&P futures rallied to that level in the morning, carved out a combined tweezer top-shooting star reversal pattern (very bearish), setting up a short. Prices swooned all afternoon extending to the 50% level from the ORL.

2 comments:

Jim said...

Hey Jamie,

I like the 5 DMA. LRCX certainly respected it today.

Jamie said...

Hey Jim,

Yeah, the 5 DMA is a good addition to the TA and you know things are really bad when no WL stocks are trading above it.