Archive for December, 2008
FGL – Bearish
Wednesday, December 24th, 2008FGL has given some bearish signals on both the weekly and the daily.
Looking at the weekly first, we can see a large Head & Shoulder pattern which is a bearish signal. The right shoulder has been formed by the head breaking through the long term up trend and changed it to resistance, creating the shoulder. [...]
Planet Wealth Value Investing Series – PART 2 (Asset Quality)
Monday, December 22nd, 2008In this series of articles we will provide some insight into how we value the companies that we select in our Renting Shares, Protected Equity and Credit Spread Portfolios.
In Part 1 of this series we described that Value Investing was about determining the value of a stock and then assessing whether it was sufficiently below [...]
Fibonacci retracement
Friday, December 19th, 2008When Looking at a stock long term, there is usually several patterns and analysis tools in play at once. BLD over the long term has had several in play.
From 2004 August 2007 on the weekly chart, a large Head and Shoulders (H&S) pattern formed. In October 2007 the pattern was confirmed with a breakout and [...]
Flag Formation
Wednesday, December 17th, 2008In a recent entry I spoke about a small flag formation on BHP. STO has potentially formed a large flag version that is waiting for confirmation breakout.
At the beginning of October, STO ran down hard creating a flag pole and in the last two month it has formed the Flag, better known as a pennant [...]
Weekly Technical Wrap
Saturday, December 13th, 2008These video require the latest version of flash:
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Gap Down – JHX
Saturday, December 13th, 2008Today JHX gapped down 2.27%. Often when this happens there is a fundamental announcement, but not without prior warning on the charts.
Yesterday JHX produced a “Dark Cloud Cover” (DCC) candle stick pattern. A DCC is a bearish reversal pattern that can be very powerful when used with other entry signals of a trading system. This [...]
Planet Wealth Value Investing Series – PART 1
Saturday, December 13th, 2008In this series of articles we will provide some insight into how we value the companies that we select in our Renting Shares, Protected Equity and Credit Spread Portfolios.
Let’s begin this series of articles by discussing exactly what we mean when we say we use the process of ‘Value Investing’ to choose stocks and invest [...]
What is a Consolidation Pattern?
Thursday, December 11th, 2008Amp is a stock to keep an eye on for a potential breakout in the next week or two, as it has formed a Consolidation pattern. So what is Consolidation pattern and how does this produce trading opportunities for the short term trader?
A consolidation pattern often follows after a stock has spent time in a [...]
How To Pick Trendlines in Stock Charts
Thursday, December 11th, 2008Support and Resistance lines have always been lines that can change roles as a stock breaks through them. But they are not the only ones.
Trend lines, up or down, can do this too. Wow has a great example of it at the moment. There is an up trend line that has been valid support from [...]
Breakaway Gaps
Thursday, December 4th, 2008Earlier this week i spoke about common gaps. Today I will look at Breakaway Gaps with an example on CPU recently.
Breakaway gaps are the more exciting type of gap that can, along with other rules in a system, produce trading opportunities. They occur when the price action is breaking out of their trading range or [...]
