Seeing a Two-Step Pattern
I spy a two-step pattern in Cytec (CYT) telling me it might be ripe for an entry on the buy side. The larger pattern in this stock still looks constructive. The price is clearly above the 200- and 50-day simple moving averages and the larger general pattern still shows some higher highs and lows.
It's the short-term work that I'm not quite convinced about just yet. Within the context of a two-step pattern however, you will see a prior swing low taken out -- even though it may turn out to be a bullish two-step pattern! I realize this can be a little confusing to someone who is not familiar with these zig-zag patterns, but let me help you focus on what is most important here. Also, keep in mind that I am not going to step up to the plate unless I see a proper 30-minute buy trigger fire off in this case. (I had not seen one as of Thursday afternoon, Sept. 20.)...337 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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