Post feedFFIV Analysis
I think this stock provides a good example. Depending on your trading rules, some might have taken this trade. I think we are looking at the pre-mature stages of a bull flag formation. Here is what Bull Flags will typically grow up to look like when they finally confirm.
The angle of the flag will either be horizontal or a downward sloping diagonal angle. Similar to looking at a flag outside. On normal instances, the flag outside my building here will look like the example on the right. On very windy days, it will look like the example on the left. But I have never seen it look anything different than these two examples. I think FFIV is attempting to follow the outline on the left. This just means we need a close above $68 with volume to confirm this pattern.
The biggest red flag (no pun intended) on this example was the lack of volume on yesterdays price movement. It alone should have provided reason to not take this trade. Keep this on the watchlist and I will follow up as soon as we see a signal. One way or another. Thanks for everyone's participation on this. Great comments and analysis.
Red Flag? Time to wave the checkered flag!!!!
Posted by
Anonymous |
11/09/2006 10:49:00 AM