Replies to post #297622 on Zeev's Turnips Patch-No Politics (ZEEV)

[ajtj99]

plexx, I posted something similar on the COMP target last night. I agree there are a couple of things that are currently targeting the 1940 area.

Actually, if you look on that same chart there's an inverse H&S pattern formed by the 1865 and 1875 highs and the 1919 lows. It's neckline was broken at around 1888 and it's been tested twice in the bull flag you show:

http://stockcharts.com/def/servlet/SC.web?c=$compq,uu[h,a]ehcayiay[d20][pb50!b200!f][vc60][J31272...

Using an orthodox measurement, that initial H&S pattern measures to around 1939 COMP, which lines up with the bull flag target.

Cool, huh?

[Zeev Hed]

The problem is that we have a very congested area in the 1933/1965 on the Naz, and even if we take 1933, it might be just a set up fr a sharp retrench. Note the tough seasonality (end of September beginning of October) we are in, amplified by still uncertainties throth in crude prices, Iraq and the elections.

I would expect more warnings to come down the pike and with insider selling reaching some kind of a top here, I think my "careful" stance might be the "safe" play for now. Note also that the NAHL has made a mild double top here, which might signal short term reversal. On the other hand, EPC is behaving quite well, but overall volume is quite tepid. The chart itself could easily turn into a fight to retake the trading range of the 7/14-7/21 period (1875 to 1933 with higher average volume than the current volume). If 1892 is taken out, even intraday, the resolution of that fight might be continuation and taking out 1875, leading to at least a test of 1820 from 8/31, maybe even worse.