Wednesday evening

Russell 2000

Russell 2000 Weekly

The Russell 2000 inverse head and shoulders is playing out on the weekly chart. If you use a conservative head number (640), the target comes out to about 1,100. I used 868-640=228. 228+868=1096. That's about 10-11% up from here. Shameless plug: We looked at this chart on the first trading day of the year - January 2nd Afternoon Thread.

On a shorter daily time frame, things are looking ripe for a pull back though... stay on your toes. :-)

Wednesday morning

BTU 5 Minute Chart

BTU - I'm not quite ready to get in with Otto and southern. The daily chart (below) looks like it still wants to test the low but I could be wrong. 

As I looked through BTU's chart on various time frames I found this one. It's a text book H & S presented here on the 5 minute but also shows very well on the 3 minute.

The neckline is the Pivot Point (20.41) with the top of the head at 21.51 that suggests a minimum move down to 19.31 and it didn't quite get there yet.  I'll wait to see if it does.  A bounce from there would be a higher low on the daily chart and would be a good entry.  I would plan to add in size if it moved up through the 50 day sma.  Clearing 21.60 looks to be a good place to fill out the position.  That should also be just about the place that the 20 day moves up through the 50 day.  That could provide momentum to test the 200 day. 

BTU Daily Chart

Note: You can click on the charts for better detail.