Chart Patterns and TA

[gfp927z]

A lot of stocks are in a 'pincher play' setup mode right now. Pinchers form after a big drop when the stock stops going down and stabilizes somewhat, and then shows early signs of a rebound. The I-hub poster 'MrBigz' was a master of the pincher play, and had designed a clever chart setup for it.

I no longer have a subscription to Stockcharts.com, so can't do the full chart setup, but can still do enough to see that a pincher pattern has formed for the main indices.

The upshot is that it looks like we'll be having a near term bounce that might be tradeable. These moves can fizzle out quickly however. Right now the DJIA is trying to hold at the key support level (20,000), and might have a bounce. Probably won't last, but might be a tradeable bounce for active traders.