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Homework for Friday 2008.11.21

20. November 2008

ESZ8 - Broke the daily pitchfork (blue lines) and blew through the MOB.  This move makes sense, since it is a continuation of the important break of the 825 level.  We are faced with a decision on whether to return back into the pitchfork ("seller's remorse") or keep on fallin'!  We are also at the MOB, oversold, false bar showing down, and the oscillator is showing divergence.  All this equals a possible upwards move.

  • Short 773 area with 722 target (773 is a Gann line measured from top or from bottom!).  Watch for support at 745-749.  If we get high enough, short 786 (bottom of daily pitchfork).
  • Long scenario, above 792 target 835.  

15:25 CST Summary - Went to 885 and broke.  Later 773 and broke hard.  Later recovered to close back into the daily pitchfork.  Looks like we had the levels, but not in the right order.

Lesson - So we can find the levels, now how do you determine what order they will matter! :]  

Homework