Saturday, July 11, 2009

Eyeing Up Exit for BGZ and Possible Bullish Trade

Click on Chart to Enlarge

For the first time in a while, the balance of market indicators is tilting toward oversold for the short term. So the stage is setting for a more sizeable bounce (tradable for blog purposes). But the lack of the ability to make a good start on it last week makes me believe there will be at least one more push below the recent lows to really build up enough interest for it to occur.

The target of the head and shoulders pattern is 825 by standard measurement. I don't think the market will fall that far this week, but if we approach that level, even the 840's, and the short-term model becomes oversold, then I will very likely suggest a bullish trade for the blog. Also, I will likely use any such scenario to exit the current BGZ trade. If so, I will be wanting to re-enter BGZ after any sizeable short-term advance. I will post more about that if such a scenario does unfold, but for now, expect the possibility of an exit this week.


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