Dow- how to catch a bottom and 100 points

ChartMan

Legendary member
5,580 46
The Intraday chart at 3 mins shows the longer term rising support line at the bottom, 49p MA, RSI and CCI. Instant retrace to 9280 as suggested last night ( lucky). Well not really, the negative divergence was there from yesterday for all to see, calling an effective tripple/quad rounded top at 9400. I've often found the pre-selloff trend to be extrapolated to the next day and strong closing to provide contrarian indication. This downtrend continued to the rising trend line and horizontal support at 9200.This was also a touch for the 100ma on 15 min chart and made a perfect 3 way touching bounce. Apart from that, there was positive divergence and downtrend breaks to confirm a strong bottom and turnaround.Entry at around 9230/40 , using 49ma cross as 3rd point of reference for long entry, should have lead to a nominal 100 point gain, closing just before the bell at around 9330. Here, on a 1 min chart, there was a failed double top with neg. divergence on both RSI and CCI from the previous high at 9320.
A short early on in the day could have netted another 100 or so points.I have a mental block to shorting, so we wont discuss that too much :)
Interesting stuff....and shows you can make a decent wedge without too much effort. TA shows the way..again.
 

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