Bearish Tower Top Reversal Pattern - Amgen, Inc. (Public, NASDAQ:AMGN)

Steve Nison on Tower Tops (TT):

The TT unfolds at high price levels. During a rally there's a lull after one or more green candles. Then one or more red candles emerge. This creates a top with green and red tower on either side smaller sticks. So WRBs on the way up and on the way down. The opposite of TT is the tower bottom.

AMGN rallied up to the RH from last week, carved out a tower top reversal pattern. Short as price breaks support. The characteristics of the TT pattern usually result in a fast move.

CELG was a sympathy play.

JOYG carved out a TT at the 50% FE of the PDL to the PDH. BUCY was the sympathy play.

B&B long on AMZN 1:30 15 min. bar failed. Markets were somewhat extended after yesterday's big move.

Finally A Rally - Amazon.com, Inc. (Public, NASDAQ:AMZN)

AMZN rallied to the top of the R-Zone , consolidated sideways, printed NRIB (NR7) and rallied all the way back up to the reaction high from last week. I did not change the Fib. placement from yesterday because yesterday was an inside day, so RH and RL are the same going into today's session.

The two weakest stocks on my WL were ABX and AEM. Here I'm placing my fibs from intraday RH and RL. ABX retraces 50% and carves a bearish stick for a short. AEM was less obvious so wait for NRB.
SU gapped above the trend channel and traded sideways, forming a very narrow wedge. It finally broke down for a gap fill.

Reversal in the R-Zone - Apple Inc. (Public, NASDAQ:AAPL)

The first chart is the trend channel of the QQQQ on the 15 minute timeframe. So far, each attempt to rally has failed. Friday's late day bounce was likely to be met with selling as well. How do we know where supply will overwhelm demand? Probably in the R-zone.

Place fibs. from the most recent reaction high (RH) to the most recent reaction low (RL) and wait to see what will happen. If the bounce is real, price will move into the R-Zone, consolidate then move higher. Candlestick patterns in the R-zone are our guide. If the R-zone acts as resistance we'll see red reversal sticks followed by a move lower. If prices consolidate in the R-zone, we want to see more sideways action.

This strategy worked fairly well with stocks trading with the market. I reviewed my WL last night, drew in the Fibs. and set alerts within the R-zone. AAPL set up perfectly.

CELG opened lower but thrust to the top of the R-zone and reversed.


WMT is not trading with the market, but I placed the FIBs from the RL to RH and finally it set up with NRIB at the base of the R-zone.

Same principles apply to stocks in an uptrend. As we noted over the weekend, oil was well positioned to BO. This a chart of SU, which held the R-zone as support on the open. A possible trade opp. is identified by the black arrow.


Tomorrow, I'd like to see a run lower for the markets, followed by a reversal. I anticipate the third rally attempt will have legs. However, I'm not saying that it will happen tomorrow. I'm saying that as we descend the wall of worry, we have to be nimble, and catch the opportunity, if and when, it presents itself.