Comments on: Goldman Sachs GS Threatens to form Cradle Sell Signal

By: AS2009

AS2009 — Sat, 07 Nov 2009 08:34:35 +0000

Great chart Corey – could we also get your view of the daily / weekly charts for India's Nifty .. is this current move down a correction and where can this go to – really appreciate your thoughts !!

By: Bob

Bob — Sat, 07 Nov 2009 06:42:41 +0000

Seems like the two time frames and respective moving averages create a squeeze of sorts, where price is trapped and likely to trade in a narrowed range until one side wins out.

Wouldn't the longer term weekly moving average carry greater weight; a dominant level of support?

I wonder if such a squeeze is similar to a consolidating triangle, where tension and potential energy build and then price ejects violently?

Also, there are certian to be stop losses on either side of the moving averages; any break in either direction would be magnified by covering and those scrambling to get on the right side of the move.

By: AS2009

AS2009 — Sat, 07 Nov 2009 02:34:35 +0000

By: Bob

Bob — Sat, 07 Nov 2009 00:42:41 +0000

Seems like the two time frames and respective moving averages create a squeeze of sorts where price is trapped and likely to trade in a narrowed range until one side wins out.

I wonder if such a squeeze is similar to a consolidating triangle, where tension and potential energy build and then price ejects violently?

Also their are certian to be stop losses on either side of the moving averages; any break in either direction would be magnified by covering and those scrambling to get on the right side of the move.

By: Chart Junkie: Goldman Sachs, SP 500 VWAPs, Real Estate, and First Busey | Wall St. Cheat Sheet

Fri, 06 Nov 2009 19:30:39 +0000

[...] Corey Rosenbloom, the Technical Analysis Professor, has a hawk’s eye on Goldman Sachs (GS): “Goldman Sachs’ daily chart to note the overhead EMA resistance that is bearing down to form a potential Bearish Cradle Sell Signal.” (Source: Afraid to Trade) [...]