Saturday, July 28, 2007
Check Your Head
Chart-chompers: How would you trade the following charts?
Leave your analysis in the comments section. I'll update the post later.
My analysis is beneath each chart.
Despite the strong volume here, I think price will meet resistance soon, likely around the area of previous support, or the 200 dma. However, the change of trend is obvious here. I expect that a quick pullback is in order here before another leg up.
More of the same here. The downtrend line has been broken. A pullback is likely, but I expect price to continue up after pulling back a bit towards the downtrend line.
After a strong rally, price is likely to meet some resistance at this level. However, should the area of resistance be breached, a trip up to the 200 dma may happen very quickly.
Also, do you find the above charts to be bullish or bearish?
Comments:
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With the difference in time zones, you may be interested in knowing what Broker A, formerly known as "The Fly" is up to in Romania at this very moment.....
http://www.youtube.com/watch?v=q1HPKIlpqOs
http://www.youtube.com/watch?v=q1HPKIlpqOs
I assume these are daily charts. I hate candlesticks charts. I prefer bar charts but I'll give it a shot.
Chart A) Will consolidate before trending higher
Chart B) Will trend higher
Chart C) Will trend higher
All those charts are trending down so there bearish but you make money for where the stock is going, not where it has been. IE-MVIS
Chart A) Will consolidate before trending higher
Chart B) Will trend higher
Chart C) Will trend higher
All those charts are trending down so there bearish but you make money for where the stock is going, not where it has been. IE-MVIS
Chart 1 - Pull back to digest a but and then continue higher.
I would want to know what event led to the recent volume surge. I'll assume it is a strong earnings report. If it is just day traders and hedgies pulling their dicks I would avoid it and expect the long term downtrend to continue. - I'd be on the sidelines.
Chart 2 - I would expect another up day to test prior resistance. Then it is up to the traders from above as to which way it goes. I would suspect that it would break through this time and continue higher. - Bullish
Chart 3 - Same as chart
I would want to know what event led to the recent volume surge. I'll assume it is a strong earnings report. If it is just day traders and hedgies pulling their dicks I would avoid it and expect the long term downtrend to continue. - I'd be on the sidelines.
Chart 2 - I would expect another up day to test prior resistance. Then it is up to the traders from above as to which way it goes. I would suspect that it would break through this time and continue higher. - Bullish
Chart 3 - Same as chart
Now that I recognize what these charts are, I am a bit nervous. I still have believe that the overall trend will continue.
I say repost the chart commencing at the point Tokman takes control, then I'll "read" what the squiggly lines are inferring.
If the breakouts were caused by an important events, the long term, say 6 months to 1 year will be upward moves.
Missed that comment about the flipping. If this is not a stock, my comment doesn't hold, since there could be no 'event' like earnings for this chart.
A Brian- good point. Is there an event or set of events like CAT missing and CFC warning that equates to a negative earnings type event for the indices?
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