Written by: Trader 2/10/2009 5:13 PM
The US Dollar index has formed a coil within a coil. In other words, it's tightly wound and due for a breakout any day now So, buy it above 88.64 (basis March) with a stop at Tuesday's Low. Short it below 84.66 (basis March) with a stop above Monday's high. The chart below shows the bigger coil.
ERTS (Stock) hit the upper end of a range and sold off into the middle of the range with Tuesday's broader market sell off. It could hit the 15 min or 30 min 20 period EMA in the middle of the day Wednesday. If it does, short it above those levels and play for a move to the lower end of the range around 14.80 or so. The chart below shows the possible horizontal channel that the stock is carving out.
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