The Qs have formed a broadening formation with a range of 1.11 points over the last 3 weeks. An upside breakout projects a target of 47.75, which is within the range we projected yesterday using the 5 day opening range for January. INTC came in with earnings better than expected, but I believe they were less than the whisper number. Still it should be enough to propel the Qs higher to complete wave (5). At this point closing under 45.53 on volume would be a strong clue that the top is in.
One reason I believe the breakout will happen is that we have already broken down below the low of the 5DOR and now we are headed for a breakout above the top of the range. This whipsaw should keep the bears at bay until wave (5) targets are reached. Of course, a massive outside reversal or other such climax sell signal should not be ignored.
No comments:
Post a Comment