The Shrinking Little Blue Box
- Posted by Greg Harmon
- on June 25th, 2012
Over the weekend I posted several charts for stocks that just did not quite make the Top 10 List. Most had long set ups but there were a few shorts. Looking back at them Monday, Tiffany’s, $TIF, stands out. Take a look.
Tiffany’s, $TIF, Daily
The daily chart above shows the breakdown of the symmetrical triangle with a target of 31.35. The Relative Strength Index (RSI) is floating around the technically oversold level with a Moving Average Convergence Divergence (MACD) that is about to cross negative. Monday, adding to the bear case the Bollinger bands opened lower for a ride down the slope. The next decent size price at volume bar is at 42.50. So roughly two $10 steps lower. Wow. Pulling out to the weekly chart below, shows the breech of the 61.8% Fibonacci retracement, with some support at 49.50 and then
Tiffany’s, $TIF, Weekly
44.00. A full retrace to 34.52 is not out of the cards now and grows more likely if price can get further separation from that Fibonacci level. As further downside weight, the 3 box reversal Point and Figure chart using the Average True Range (ATR) as the box size has a price objective lower to 27.72. Still time to short the little blue box.
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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