Interesting price actions- false breaks? Gotta observe.




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This stock displays the typical symmetrical wedge formation. A break from the upper or lower trendline will signal a bullish or bearish stance respectively.

As we can see from the chart, the wedge has broken downwards with significant volume. I suspect the price will visit the support of 0.695 in the coming weeks.

Hope this helps!
=)


!!!!--------------------EDIT:

It seems I did not use the updated chart to do my analysis. The chart was not updated for today's price action- the price broke down further with even higher volume. Anyways, today's price action confirmed my previous suspicions that the price will test 0.695.

The next question is: what is the new advice I would give base on this new infomation?


I am a firm believer that an over-deviated price action will always result in its return to the mean - this is where opportunity resides. The price broke the 2.0 lower bollinger band with much force. I suspect it will test the previous low of 0.625 before rebounding slightly back to its mean again.


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This stock is a very volatile and thinly traded one. So trade with care!


I will approach this chart from the viewpoint of patterns and trends.

This stock has been experiencing a lot of gaps over the past months. A pattern has emerged: the gaps will always be covered within a few days. Another pattern is that a short term reversal will occur when the price breaks the 2.0 bollinger and rebounds.

Higher lows indicate the short term trend is still bullish.

My take: a gap down to the 1.4 or 1.36 levels will present a good opportunity to buy. The price may try to test 1.55 again.

I hope this helps!
=)



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Need a second opinion on a chart? Clueless about Technical Analysis? Already did your due diligence on a stock but know peanuts about the timing? YES! You have come to the right place. Learn and compare notes by ASKING me questions or REQUESTING for a chart. I am not expert but I will try to help because I love to learn about the market like you. =P

Niversphere, fellow blogger and fundamentals investor, requested for a chart on Longcheer.

Recently, it rebounded off the 0.695 support and its downtrend line with great fervor. It is bullish in my opinion. But just today it exhibited a bearish evening star plus a slight overdeviation on the upper bollinger. The trader instinct says it is potential short opportunity(gotta check if Phillips CFD has this on the list... =P).

If you are waiting to buy, I suggest waiting for a few more days. I expect a small technical decline the next few days and then a continuation in the uptrend.

As always, I could be wrong. So keep your cutlosses in place, be it for your long or short positions.

Hope this helps and keep the requests coming(so I have content to fill)!!!


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