Entry Price: 4439-4474
Stop: 44.75
As I'm sensing equity sentiment is changing from ultra bearish to 'slightly' more bullish, it must be time for the next plummet!
1. The Nasdaq is nearing 7 month resistance levels.
2. Late August showed decisively lower lows signaling a potential top is in.
3. While guessing at trending channels is not a very reliable method, I decided to take my best crack at it using the 8/24 low and set the top at the 8/20 breakdown level cutting off the head at the neckline assuming this was just a spring intended to get the bulls fired up before the breakdown.
4. The 9/17 high did not yet reach the top of the channel and now prices are taking one more crack at it.
Note: I normally do not condone using diagonal trend channels vs horizontal ranges. I believe in horizontal support/resistance and supply/demand trend lines. That being said, sometimes trend lines just look too good to take a crack at them, there's no surfire way to pinpoint the equity top but this is my best current throw of the dart.
Stop: 44.75
As I'm sensing equity sentiment is changing from ultra bearish to 'slightly' more bullish, it must be time for the next plummet!
1. The Nasdaq is nearing 7 month resistance levels.
2. Late August showed decisively lower lows signaling a potential top is in.
3. While guessing at trending channels is not a very reliable method, I decided to take my best crack at it using the 8/24 low and set the top at the 8/20 breakdown level cutting off the head at the neckline assuming this was just a spring intended to get the bulls fired up before the breakdown.
4. The 9/17 high did not yet reach the top of the channel and now prices are taking one more crack at it.
Note: I normally do not condone using diagonal trend channels vs horizontal ranges. I believe in horizontal support/resistance and supply/demand trend lines. That being said, sometimes trend lines just look too good to take a crack at them, there's no surfire way to pinpoint the equity top but this is my best current throw of the dart.