Thursday, July 16, 2009
Qs Close Above Major Median Line
The Qs have closed back above the major median line confirming the trend is up. At least near term, I expect the green trendline to provide support, but once 5 waves up are complete a 50% to 62% retracement is likely that will carry the Qs below the major median line briefly once again.
If they are able to move back above it after the correction, then a strong move toward the upper trendline is not out of the question.
A point about the MACD. In general, Gerald Appel advocates selling only on the second signal after a buy signal (or using a slower MACD for selling such as 19,39,9). The only reason to sell would be if the MACD falls below its recent low after a sell signal.
Posted by R. Craig Pritchard at 8:27 PM