"i would have preferred it if we had different candles giving a high (3) and higher low(2) but in this case the same candle does both but it is still is valid as the candles after went to the same area so it looks clear."

Remo,

Could you clarify the above please, i got a little lost!! It doesn't take a lot!!!

Possibly with a picture example? as you say "Its always easier to see with a picture "

Yep...very possible ...Its always easier to see with a picture
The formation looks nice and now you have to wait for the signal. The signal comes once it breaks past 75.5. Then you would place the stop below the 2 point which is roughly around 64.5 area.
i would have preferred it if we had different candles giving a high (3) and higher low(2) but in this case the same candle does both but it is still is valid as the candles after went to the same area so it looks clear.

dl.dropboxusercontent.com/u/4899609/xel12thapril2014.png

Slow Eddie wrote:

Wondering if we are seeing an incipient 123 low here? With low at 58.25 on 31st Mar and higher low at 64.4 on 4 Apr? This low got almost visited on the 8th so does this invalidate or weaken that earlier low? Ended this week above 69. If this is a 123 low then I am assuming the 3 level would be 75.5.
A learners tentative exploration here by the way.

Hi Eddie,
Yes it was more luck than my charting expertise (I have none).
Jackozy was right in his advice though, there was no way of knowing for sure that it wasn't going to continue falling even though RSI was through the floor.
Just made a little, a drop in the ocean though compared with the past losses I am trying to steadily recoup ')

Hi Count glad your instinct worked. Felt much the same but resisted that time. If I hadnt you can be sure rise would have failed lol

Steve went up 8 points (13%) today. ')

I'm not sure that 53.6p low was genuine. It's on my freebie chart but IIRC the spread never went near that level on the day (could have memory failure though!).

Slow Eddie; indicators can remain oversold/overbought for ages so you cannot simply trade something on that basis. In fact, when oversold you'll often find that bounces get sold into and vice versa when overbought (dips get bought).

Trying to catch the bottom is a very dangerous game as I know from my own bitter experience.

Hi Steve
As ignorance only gains by asking questions can I just ask if the RSI dropping through the lower channel line doesnt indicate it being oversold? Also is the support not just above 60 on your chart? Which looks like it might hold?

Steve would 53.6p be considered a significant support level (from 26/06/12)?

Thanks for your dose of reality Steve ')
I agree with your sensible advice that it is not clear it has bottomed yet.
Still a lot to learn.

PS Note that previous uptrend support got backtested perfectly at 106p - great place to short it if your broker allowed (sadly, mine didn't).

Hi Count, good to see you over here

I'm not sure that "cheap as chips" qualifies as a sound technical support level on which to buy a plummeting share but there is some support at 50.9p from a gap and double top:



dl.dropboxusercontent.com/u/20815047/FTS...XELdaily31_03_14.png

If that level fails (as the 61.6p gap clearly did) then next support is 35p. As ever, it's best to wait until a key support level or confirmation that a bottom has formed before buying as it could just keep on dropping.

Isn't it interesting how the AIM (and ex-AIM) darlings are the ones getting slammed? Easy pickings for the City...

Like to hear you guys thoughts on current SP of XEL, went sub 60p today, so bought a few at 59.3p. Closed just above at 60.25p. Seems cheap as chips to me at this price. Hoping for a bounce soon as drop seems overdone

, maybe a correction back to around 74/5p in short term.