On the daily chart of Du Pont or DD, there had been a Strong tk cross over 5/28/14. However price did not break the high of 68.82 (4/4/14) until on 5-30-14 is when price closed above 4-4-14's high. Since the 30th of may, price has slowly risen and is suddenly starting to retrace.
There is strong confluence that the market may do a fib bounce off of the 50% retracement. First, the kinjun sen is lined uo with a 50% fib ( the green dotted line on the chart). which is around the 68.02 area. The 50% fib is at 68.01. Next if you were to place the ichimoku cloud on a weekly chart the tenkan sen is at 67.89 which is a support level on the weekly chart.
Look for a key bounce around the 68.00 range on dd
Comments
lawcch
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There is no guarantee that the trend will rebound when the trend retrace to 50%. I wait for 8 EMA and 34 EMA crossover to take the trade entry. Weekly chart only give us the primary trend direction but for more precise trade entry, I go down to 15-min chart when the trade rebound from the key support key after 8 & 34 EMA crossover and also at the same time taken out the previous swing high.
tradingformoney
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i never said rhere is a guarantee, however this is a price formation that happens all the time.
lawcch
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most stock prices may react or rebounce on 50% or 61.8% fib. retracement level where I place my trade entry on the pullback.