Friday, April 24, 2009

Divergence on Cambell's Soup

Campbell's Soup set up a nice bear flag on the 5 minute chart that met its target . It then set up another bear flag after that. Normally I would take that second bear flag (even though they don't occur very often). But the second bear flag occurred on the third swing up of the MACD as the price made its third swing down. Time will tell, but usually when we see a pattern like this it means that the run down has run out of steam and it is less likely that the trade will succeed.

1 comment:

Anonymous said...

I was hoping you saw the 15 min opening doji on spy. I could not take it (tell you later), but sure would've worked out.
Adrian