When considering a position in the Market, know if the buyers or the sellers are in control, is key. Technical Analysis techniques can help us determine who has the control.

Peaks and Troughs is a very powerful tool to use when looking at who is in control. Higher Peaks and Higher troughs tells us the buyers have control as there are new highs (PEAKS) being made each rally. And on each pull back the low (TROUGH) is higher than the previous low.

Keeping an eye out for a change in role can keep us out of a turning market and help to change our view early on in the new move to take full advantage.

JHX chart has recently indicated that the sellers are losing control and the buyers are coming in stronger. The buyers have been able to push through the previously respected down channel in late March. This also created the first higher peak. Now there is a pull back in play. If the stock rebounds off the channel’s top trend line and support at $3.80, a higher trough will be created. This is confirmation the buyers have taken control and the stock is likely to see at least the previous high at $5.15 or next resistance at $5.50.

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