(Click on image above to enlarge it.)
This monthly chart of American Express generated an NMC Cross Kiss Zero Hit on the month ending 4/30/08. The following delay bar in May created a setup that ultimately triggered a short entry at roughly $45.00. This setup has led to a near 50% meltdown over the past 5 months.
Note that the NMS (2nd sub-graph below prices) had already cut below both its Ocean moving averages and below the zero line prior to the Zero Hit—an ominous formation. Additionally, BTX (3rd sub-graph) was above its trend threshold of 35, and the BTX 2Line (4th sub-graph) had seen an exchange of dominance, a bearish development with the red line crossing above the green line for the first time since mid 2003.
Now let's look at an AXP weekly chart to gather additional information:
|
