Dow Intraday charts 06/10 - 10/10

ChartMan

Legendary member
5,580 46
Two scenarios possible:-
1: We've dropped out of the channel.
2: We've picked up the single touch lower support line.
Too early to say anything else really.
 

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reddragon

Member
73 2
Hi CM,
Does the fact that today's low of 9562 - which is wthin
2 pts of the magic 64 have any possible signifigance !!!.
Yours,
Reddragon.
 

ChartMan

Legendary member
5,580 46
Soup de Jour...
1: support found at 9564.
2: Note the slope change up wards before the triangle break...
3: The support test after it breaks.
4: Price goes straight through 9600- prior resistance.
5: Triangle target not quite met, followed by bull flag. RSI strength ratio is 1:1
6: Target for bull flag is 9635, not met.
7: 3 pk ND top resolved before T1 met.
8: The inverse"W" top ( ok, "M") has a target of 9644.
Something I need to investigate... Sometimes an ND top is followed by a continuation... Does the support line break of the ND top formation NORMALLY signal a short????
Here's what I see. IF an ND top is going to be a reversal,
a) it's immediate
b) it's strong
c) the break through support is convincing.
Otherwise, it takes a while to continue on up. Therefore I conclude that it would be safe to execute a reversal at an ND top, with the proviso that a losing trade will be small and controllable, against the reward of a rapid drop.
 

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china white

Established member
979 12
3rd knock at 1038

U may recall I talked about a C&H forming last week. IMO we have just completed forming a bigger C&H with all the hallmarks of a major B/O right round the corner (if u dont like C&H as a TA tool, u may just call it a developed bull flag :cheesy: ). If 1038 is taken out, I'd expect a "measured move" to 1068.

Of coz the alternative is a triple top at 1038. As u can c, RSI 60 min is forming a ND, however if u take a butcher's at the next post, u'll c why I reckon this alternative is much less likely.
 

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china white

Established member
979 12
bullish price action IMO

here is why I believe the bulls r favourites here. the pullback at 13;45 failed to touch the lower bound of the channel, delivered a R/S switch on RSI 5 min, which was fully confirmed by ADX cross 20 min later. Perhaps safest point to go long. Quite expectedly, a B/O of the channel later, due re-test of the upper bound (nice point to double your longs) and a pop to "magic" 1038 :D

However, this is earnings season, and as u perhaps understand, thell b loads of good news and just as many misses... We'll c what spin the Street will put on it. Either way, I expect a 30-point move within days.
 

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china white

Established member
979 12
btw, chose 60% on my QCharts images, but they seem 2 b just as big when pasted..... :( my apologies. Any idea where I am cocking them up? :)
 

ChartMan

Legendary member
5,580 46
I concur , China. A Cup and Handle, with a recent bul flag breakout on the 10 min chart, confirmed by the last low failing to make support.Target? Let's say around 9900. Early next week timescale. That's presuming it delivers, of course. Could just as easily be a Trippe top with that sniff of ND creeping in on RSI.
 

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ChartMan

Legendary member
5,580 46
Not a lot to show for today.Open support at magic 32, a failed Bear flag and two ND tops. The first went into instant drop, as discussed last night. The second is clearly going to continue... having closed at HOD ( Famous last words). But then again, from time to time, I get excited and stick my neck on the block. Not that I take any notice of my own ramblings. Of more interest to me is that someone else ( China) sees what I see, even if it is on ES. He says 30 point move soon, which = a DOW move of 270 ish. I differ in that I read it as a tad less at 245 points . Either way , that's some nice up move on the cards. I just hope it doesn't happen on Friday.... We have seen some big moves in the past on the last day of the week. And that will scotch my DOW comp. entry. :cheesy:
 

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china white

Established member
979 12
CM - just crossed my mind - 1068 is not a special number at all (apart from William the Conqueror's battle of 1066 :) ), however, Dow @ 9900 will trigger testing 10K imo.... a really interesting point here! :)
 

fazalv

Active member
123 1
Good work China!

Cm, between 19.50-20.10 I sensed a whiff of 3ND developing and thus exited my long.
Any clues in RSI or support/resistance which would have prevented this cock up!!!
 

Pete Hannan

Junior member
25 0
Chartman,
I've started following your analysis just recently, and I've downloaded your trading system.
Last night I watched the price rise above the 100 EMA at 18:34, pull back to test the line and then move up again. I entered a long at 18:40 which proved disastrous. Did I overestimate the significance of the breakout - well obviously I did - I was just wondering if you had a rule of thumb for the number of points that constitute a breakout before the pullback (12 maybe?).
Also, like fazalv, I spotted the ND late in the session and executed a half-stake short (I cut it before the close). Where would you recommend I best place a stop loss before entering such a position?
Comments are welcome from everyone, and please keep up the excellent posts.
 

mombasa

Established member
561 1
Pete,

There was a bear flag developing at that point - so a long was a bad idea.

Also, for safe entries, CM says don't enter a trade unless 100 EMA has been breached by 20 points and then pulls back.
 

Pete Hannan

Junior member
25 0
Thanks mombasa,
and is there then a points criteria for what constitutes a verified move away from the 100EMA after testing it following the break through?
 

mombasa

Established member
561 1
No, at that point u have to make a decision using RSI strength of move etc for judgement.

It's not easy - what I've found is that I can more or less figure out why the dow has done what it's done by analysing the TA after close, but realtime is another matter entirely - that takes a lot of confidence and patience.

Keep on studying CM & NB's articles - it takes time for it all to sink in - and lots of practice applying that TA.
 
 
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