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Looks like an ABC corrective wave has started. Resistance is the 50DMA, around 38.55.
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The price may correct intraday but it doesn't matter much. This stock is going to yield if you hold to it for a few weeks. The only thing to worry is the closing price today. If there is no sudden reversal and it close all nice above 37.00$, it's in the bag. Yes currently its correcting a little bit the climb of this morning but I wouldn't be surprised if BBD ends up strong late this afternoon. Alot of investors and institutionnals are most likely waiting that moment.Comment
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EMphase! Welcome dude; thanks for contributing that wonderful chart! You’re huge already! Hehe
I look forward to reading more of your work! My own EWing is based on 'fuzzy logic' and breaks rules in ways you would frown on, so forgive my fuzzy counts should you stumble across any of my charts.
It'll be great to have a clever traditional EWer on the forum!Comment
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To be a valid head and shoulders pattern, the symmetrical triangle needed (absolute must) to do a break out on the downside. The symmetrical triangle did a break out on the upside (unless today is a market manipulation) thus most likely invalidating any H&S formation you may see. The price isn't supposed to go over the neckline you made and now its starting to cross over it. To support an H&S theory, it would mean that my whole Elliott Wave count is erroneous over the last 5 years. I am extremely sure of my Wave Count except between march 2005 and july 2005 where it's not that clear but I still counted it in a satisfying way.Comment
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BBD is a screaming buy here.....should get back to recent highs by early to mid MayComment
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EW & Dow Theory
On the Dow Theory side of the fence, we need a close above $38 to break the pattern. That may happen tomorrow.Originally posted by EMphase
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EMphase, with respect, I see a certain degree of naivety in your reply dude.Originally posted by EMphase
The bottom line is that no matter how perfect your count or perception of bullishness, stuff can happen to invalidate it. Patterns do fail, your count may be wrong, or if not wrong now, may show you something you didn't expect and cause you to rethink and recount. There are no sure things in the market, no matter how long you've counted BBD, whether 5 minutes or 5 years.
Statements like "it's in the bag", and "correction doesn't matter" and "it isn't supposed to" lends the perception that you are trying to 'tell' the market what you think it should be doing, and stubbornly thinking you are correct, rather than listening to the market and identifying points where you should expose yourself to risk, and points where you should admit you are wrong about a bias and unexposed yourself.
Currently, your count and bias are proving correct, and congratulations, and I welcome everything you have to say about any stock; debate on TA is excellent and as long as civil and courteous it is going to generate thought and learning, which is what I'm all about.
To your statement on the SHS, (what makes it valid), I don't think there's much question it's currently valid. It is what it is until it isn't. And until it isn't, I'd rather say that it is. Hehe
But seriously dude, I hope your count is correct and MM and everyone long this stock makes money. I'm just not a buyer cuz it doesn't fit my own model
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<< To be a valid head and shoulders pattern, the symmetrical triangle needed (absolute must) to do a break out on the downside. >>
The validity of the H&S top pattern has nothing to do with any symmetrical triangle. It was a valid H&S top.Comment
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Not everything that looks alot like an H&S is actually one. Here is the potential trick to it. What you are seeing is on B). What is potentially happening is on C). A) is the theorical H&S model.
On a side note, today it ended up creating something like an evening star so the closing isn't that great despite the fact its over 37.00. If it was a white candlestick it might have been different and a stronger positive signal.
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I disagree with your analysis. BBD is a H&S pattern that failed to reach its price objective of 28.80 and has now risen back above the former neckline, this negating the pattern. That does not make it an invalid H&S. Perhaps you meant to use the term "failed" rather than "invalid?"
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Upgrading MFLX
It would be a good test of the supreme junior chart genii to take a shot at MFLX before Stearns or Morgan or whoever decides to manipulate, er, upgrade it. Jus sayin.
Good trading.Comment
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Well failed or invalid... what I mean is that I entirely agree with you that it looks like an H&S by the shape. I'm not questioning this. If you look at it quickly, it clearly seem to have a shoulder, head and another shoulder. However what I'm pointing out is that it's not doing whats intended to do which was to get the stock to sink to 30$US level. The problem with that H&S pattern lies on the second shoulder.
Spikefader:
I am not that certain about it. Thats why my first reaction was to take a straddle on BBD if it was possible to do so. You see that we all agree that this stock is going to do a move very soon either on the upside or the downside.Comment
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There's an important distinction between Failed and Invalid. A "Failed" H&S top implies that the stock action is stronger than expected, given that it did not sink as far as the pattern projected. "Invalid" implies the pattern never really existed, therefore no target price objective can be calculated.Comment
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what?
HeckFire! I could have told you that the stock will either move to the "upside or the downside" without all this fancy discussion and TA....lolOriginally posted by EMphase
btw.... what other dollars do you trade in.... other than US ones? Where are you from anyway dude?
oh yeah.... Welcome to the forum..... AND.... Have you ever heard of the VTP?BEEF!... it's whats for dinner!Comment
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