Last night we said that FSLR could go lower because it closed weak. The fibs were placed at the early pivot high and low. Price rallied back through the R-zone and carved out a shooting star ,so short as it exits the R-zone.From the 15 min. chart we see that the initial inverse C&H turned into an inverse H&S. The H&S failed and we reached full extension of the initial pattern in early trade this morning.
I started scaling in ABX on a higher low, when I noticed that AEM, today's loss leader was reversing and moving out of its base. Added to the position after it formed a 3 pivot base. I partialed out when price ran into the downsloping 50 SMA on the 15 min. There was a C&H pattern on 15 min. but it stalled shortly out of the base because of 50 SMA.I did same trade in my retirement account except holding for a swing. If markets roll over, gold should be the safe haven play once again.
4 comments:
Jamie,
Can you explain what is the R-zone? Thanks
Jordan,
R-zone is the Fibonacci retracement zone 38 -62%. When price moves into the R-zone, we look to see if it will act as support for the next leg higher, or resistance. We look at candlestick patterns for a clue as to direction.
trader Jamie:
I agree with you on the gold. It is pulling back nicely. I'm waiting for the pullback to be finished then I will get back in again when I see a setup. I did a review on my last swing trade on GLD in my blog http://lastchipstanding.blogspot.com/2009/02/another-moment-in-gold.html
smtrader
SM Trader,
Yeah, at the very least, I'm expecting a lower high. Made a quick profit on the gap open and trying again.
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