Archive for October, 2008
« Previous EntriesReversal Signal – TOL
Friday, October 31st, 2008In the Trading Room we identified a fantastic reversal signal on TOL. We used a very powerful Japanese candle stick pattern as a starting point, then analyzed the stock further to see if there was more to support the trade. The candle pattern is known as a piercing pattern. This is a bullish signal and [...]
Channels Patterns
Tuesday, October 28th, 2008Channels are fantastic patterns that can be used in your trading system that have the potential to produce consistent results over long periods of time. NCM is a fantastic stock for producing channels. In fact there has been a large down trending channel since the beginning of the year that has given many potential trading [...]
NAB Momentum
Tuesday, October 28th, 2008NAB, over the last month has been gaining a positive momentum. Since December last year the stock has had a down trend line that is well respected. The $26.00 mark has also been respected of late, but is also a strong weekly resistance line that is evident from as far back as 1999. These two [...]
Head and Shoulder Pattern – JHX
Tuesday, October 28th, 2008Today JHX produced an ideal entry signal for us in the trading room. On the daily chart of JHX there is a Head and Shoulder pattern (H&S). These patterns are a bearish signal. When the neckline of the H&S is broken, there is a very high probability of the stock travelling the same distance from [...]
XAO – 20 – 24 October
Tuesday, October 28th, 2008Since reaching the Head and Shoulder target two weeks ago, the XAO has went sideways. The sideways movement has been between two major weekly support lines, until today. Friday was with the go. There are several signs indicating there is a weakness in the go and has less probability of continuing. First, is the low [...]
The Hammer
Wednesday, October 22nd, 2008Candle stick patterns have long been a powerful trading tool used by the professional traders. The “Hammer” when used in conjunction with significant support and high volume can provide an entry point for a reversal trade. The name of this candle comes from the way it looks, much like a hammer. A green hammer found [...]
LGL – In Your Watch List
Wednesday, October 22nd, 2008There are times when a stock on our watch list should be considered untradeable until it meets certain requirements. As small term traders, one of these requirements is, the price point needs to be at a significant support/resistance/trend line. These significant lines are found on the weekly chart before finding an entry signal on the [...]
XAO Double Bottom
Sunday, October 19th, 2008After a huge week like last week I reckon we were all looking for a small relief this week. So what did the XAO really do? Not much really. After all the hype at the beginning of the week, “This is the bottom” “stock market rallies” , the market finished up back where it started. [...]
FGL down trend channel
Thursday, October 16th, 2008FGL has spent the last 12 months trading in a down trend channel. (click on images to enlarge) At the beginning of September the stock broke through the resistance that the channel had been providing, then came back down and bounced off the same line using it as support. The stock then ran up [...]
Descending Triangle Pattern
Wednesday, October 15th, 2008As technical analysts we look at history to show us what has a higher probability of re-occurring in the future. Previous areas of support/resistance often become future areas of resistance/support. Also some stocks historically produce certain types of patterns over and over. CSL is currently producing a Descending Triangle after coming off the $41.00 weekly [...]
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