MPTrader Mid-Day Minute
Thu Jan 4th 2007
After the HHH whipsawed us yesterday, the upside pivot reversal is very compelling, and argues strongly that a pullback has ended, and a new upleg has started. A similar pattern has been carved-out in EBAY (31.13) off of yest.'s low at 29.61, which indicates that a new upleg has started that should retest Nov. high at 34.00.
In the HHH, the potentially picture (resembling an inverted head and shoulders base pattern) continues to mature. Yesterday’s whipsaw low at 51.93 likely ended the entire pullback off of the 11/22 high at 56.50. If that proves to be the case, then today’s action represents the start of a new upleg that initially should hurdle minor resistance at 54 on the way to another confrontation with the “neckline resistance plateau” at 56.50.
Only a failure to hurdle 54 followed by a decline that breaks 51.93 will argue for still-more backing and filling into the 50 area prior to another rally effort that triggers the larger upside potential of the 10-month base pattern.
