Tuesday, June 30, 2009

The Answer is Negative Divergence!

Yesterday I posted a chart of GS and asked what the chart tells us. GS is showing a clear negative divergence right at resistance. This signals a pullback at resistance, or if the R level does break, a pattern failure post breakout.

Short entry can be made under R, or post breakout. As noted to Trade Report members, I went short yesterday under the R level at $149.12.

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