Tuesday, November 07, 2006

Chart: TIE

TIE (Titanium Metals) has formed a classic bearish flag pattern after spiking down on heavy volume. While a conservative approach would wait for entry after a break of the flag's trendline, I decided to enter early. The fact that the stock broke down after an upmove on weak volume leads me to believe that this stock is broken and ready for a new thrust down. MACD, Stochastics and RSI all seem to confirm this point of view.

3 comments:

Will said...

Spec- good eye. That big volume on the 10/31 bar bugs me, so I won't be as aggressive as you, but a break below that 11/2 low of 29.10 will have me on the bus as well, just a few seats farther back than you :-)

The Market Speculator said...
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The Market Speculator said...

Definitely the more prudent approach, Will. We'll see if trying to sneak in that extra point and a half pays off for me ;)