Wednesday, December 06, 2006 8:54:01 AM
QQQQ - Tuesday's 5-Minute Chart...
The QQQQ held onto gains from Monday's rally on Tuesday by spending the day in a narrow trading range that became more narrow as the day wore on.
Tuesday's 5-Minute Chart (below) shows the development of a triangle from which the QQQQ will break either up and out or down and out.
On Wednesday, no economic reports are scheduled for publication. The QQQQ will trade, therefore, based on whatever steam it has left.
If the QQQQ is, indeed, moving up and down within the context of a trading range as the ADX Indicator on the Daily Chart suggests, then, it has now risen to the upper end of that range. This observation, in addition to the fact that Tuesday's price action resulted in another Doji style candlestick (see the Daily Chart) suggests that caution on the long side is in order.
The QQQQ held onto gains from Monday's rally on Tuesday by spending the day in a narrow trading range that became more narrow as the day wore on.
Tuesday's 5-Minute Chart (below) shows the development of a triangle from which the QQQQ will break either up and out or down and out.
On Wednesday, no economic reports are scheduled for publication. The QQQQ will trade, therefore, based on whatever steam it has left.
If the QQQQ is, indeed, moving up and down within the context of a trading range as the ADX Indicator on the Daily Chart suggests, then, it has now risen to the upper end of that range. This observation, in addition to the fact that Tuesday's price action resulted in another Doji style candlestick (see the Daily Chart) suggests that caution on the long side is in order.
Buy at Support
Sell at Resistance
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