Wednesday, August 18, 2004 8:26:29 PM
SUNW – Falling Wedge Triggers Buy Signal
This is a Short Term Technical Analysis, taking in consideration some Long and Mid term references that are «near the coast»…
Overview:
Since late June, that SUNW is trading a Falling Wedge (FW) pattern. This is a Bullish formation, which goes against an important Long Term Support level in late July…
The Chart used for this SUNW Technical Analysis:
http://globalspeculators.com/trading_futures/index.php?topic=44.0
Anyway… last week, SUNW performed a false breakdown of this pattern, which gave no specific signal since the FW only give buying signals based on upside breakouts.
Today SUNW closed above the top of the FW, giving a clean and simple buy signal for short term purposes (yesterday session was already a prediction of today strong day, with a nice hammer candle providing «backup» for the buying power that we witnessed today).
The target of this pattern is the 4.35 level within 1½ months. This signal is aborted only with a close below 3.60.
This short term target, have to fight with 2 other patterns from different time frames:
- The last long term support which is now a resistance, with reference at the 3.90 level
- The Mid Term descending resistance that is spotted right now on the 4.15 level
Besides this values, we also must have in consideration the ema50 and the ema200, that by coincidence are just near both the values I just mention.
So…. We have a pretty interesting chart here…
Who’s going win ? the short term target or the long and mid term patterns ?
Going a bit further… if SUNW really gets to the target, we would have another upside breakout, giving a bullish pattern for the mid term…. But… but…. Let’s focus on the short term…
Best regards,
Jesse Livermore
http://globalspeculators.com
This is a Short Term Technical Analysis, taking in consideration some Long and Mid term references that are «near the coast»…
Overview:
Since late June, that SUNW is trading a Falling Wedge (FW) pattern. This is a Bullish formation, which goes against an important Long Term Support level in late July…
The Chart used for this SUNW Technical Analysis:
http://globalspeculators.com/trading_futures/index.php?topic=44.0
Anyway… last week, SUNW performed a false breakdown of this pattern, which gave no specific signal since the FW only give buying signals based on upside breakouts.
Today SUNW closed above the top of the FW, giving a clean and simple buy signal for short term purposes (yesterday session was already a prediction of today strong day, with a nice hammer candle providing «backup» for the buying power that we witnessed today).
The target of this pattern is the 4.35 level within 1½ months. This signal is aborted only with a close below 3.60.
This short term target, have to fight with 2 other patterns from different time frames:
- The last long term support which is now a resistance, with reference at the 3.90 level
- The Mid Term descending resistance that is spotted right now on the 4.15 level
Besides this values, we also must have in consideration the ema50 and the ema200, that by coincidence are just near both the values I just mention.
So…. We have a pretty interesting chart here…
Who’s going win ? the short term target or the long and mid term patterns ?
Going a bit further… if SUNW really gets to the target, we would have another upside breakout, giving a bullish pattern for the mid term…. But… but…. Let’s focus on the short term…
Best regards,
Jesse Livermore
http://globalspeculators.com
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