A Shift Could Be Bubbling at F5
For any given stock, when I see a pattern shift in I stalk the next pullback for a possible entry. Let me explain by starting with past action in Goldman Sachs (GS) as an example. Into the June 4 low we saw a clear pattern of lower lows and lower highs, and the first time it took out a prior swing high was when it surpassed the June 12 high of $97.50. As a general rule, when this occurs I consider it a "shift" in pattern -- in this case, from bearish to bullish.Goldman Sachs (GS) -- Daily Source: Dynamic Trader View Chart » View in New Window »
The high was only surpassed by $0.10, but even with a move like this I still might stalk the next pullback to see if it holds and triggers a buy entry. As you move forward on the Goldman chart, notice that this prior high was then surpassed by a decent margin. The next two pullbacks after that were followed by a couple of tradable rallies....194 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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