Wednesday, August 17, 2011
Coming Early is Cool
As we see on this daily chart of $BEXP it began topping out in March of this year, forming a bearish descending triangle pattern, a very possible reversal signal. However, the stock is still working it's way towards the horizontal base at $24, and it is very unwise to initaite a short before a confirmed break below that level. However, inside that descending triangle is a potential head and shoulders top, so an early short is warranted if you are antsy. Neckline is at 29, a prior huge level, as well as a gap fill and the 50SMA. Also, the MM knees and toes target is at, what do you know, 24 bucks, the spot where the broader descending triangle's base is located. ( This is very very symmetrically harmonic, happens often, and provides extra bearish logic to the pattern.) So being early is sometimes a sweet sweet thing. Get two moves while executing one.