February 27, 2009
Short Term Trading
By Planet Wealth
Small term trading is generally my main focus in this blog, but the main techniques used to analysis small term trades can be applied to longer term trades.
Peaks and Troughs are a reliable way of picking momentum change in a stock. CSL has had a momentum shift on the weekly chart. Higher Troughs are an indication of Bulls being in control. Once Lower Peaks (LP) and Lower Troughs (LT) start forming the Bulls have lost control and the Bears have taken over. You could expect the Stock to continue down.
CSL now has LP and LT and right now is trying to form the second LP. This lower peak is being made by the 3 major trend lines holding the stock down. This current level is also a significant Fibonacci retracement level-62%, which gives high probability of the stock continuing to the down side. Next support level is around $32.50 but with this already being broken through once to form a LT, it is likely to be broken again to form the second LT.
Topics: stock market, Technical Analysis, trading patterns | No Comments »
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