This has now gone through the trend line. This bounced of the trendline a few days ago on a first attempt basis but have since come back to test and break it . This is one of the reasons i say about trading this on a first attempt basis. When the price re-test a level so soon afterwards it normally will break it.


dl.dropboxusercontent.com/u/4899609/ved9thoct.png

Closed the rest @ 1320

Closed half @ 1205
For the rest its a free trade

Morning Star
Long @ 1141 on Friday
SL below 1051 which is also 61.8% fib level

Education purpose only

This is a classic example of a trend line breaking then going higher a few days apart.



When this happens you should redraw the trend line as it was a false breakout. Real Trend line breaks will move away fast from the break point. If it punches back through with force within a few days then likely A false breakout. SO best to redraw the line from the new low point.
This is mainly for short term trading so bear that in mind.

gclark25 wrote:
Closed my short @ 18 pips profit - price has intersecting with both the 100 and the 49sma on the 4H chart.

Thats enough for me to take a quick scalp - and watch how this reacts around about this area.

deadcatb0unce wrote:
great call deadcatbounce

I should have said, if this proves to be a wave 3 then the minimum target would be 1780. A wonderful investment for those in from 986. Fingers crossed for the lucky few:)

The labeling depicts just one option for this share. Whether or not this is a wave 3 will need confirmation at a later date - breaking thru 1312 being the test. Whatever, at the very least this will produce a retrace to around the 1200 mark.

good spot

1hr


daily

I took the trade on @ 1034 with a 10 point stop and a 19 pip target.

Quick note - the 1H chart is showing early bullish signs with some RSI divergence.

That considering, if I had to guess, I would say retrace down to the 108-112 area, before a leg up to break the 1H 49sma hurdle & the 4H 20 sma

imo.

Don't have time to put up all the charts - but quick view.

It seems to be testing these short term resistances:

Daily - trendlines
4H - testing 20sma
1H - testing 49sma
15m - testing 200sma

As these are all lining up - I think it will retrace, so next question is where.
Looking at the charts again, here is some of the possibilities for a short term retrace before another leg up. imo.

5m - 200sma support @ ~105-110
15m - 100sma @ ~ 110-112
1H-20sma @ ~ 108-112

So I think a quick retrace down to these levels and then see what it does from there.

I haven't looked at the chart in great detail in the long term. But looking at the 1H chart indicates taht it is on a healthy downtrend following the 49sma for resistance, so personally I won't be bullish until it breaks that resistance.

Although it has broke the 49sma & 100sma on the 15M - one to watch.

I would short this for a scalp trade down to 112 if I had to - but due to the spread etc, it isn't the greatest risk to reward.

Look like this could retest trendline at 1045 is it??

It could be a 123 high.
Only thing about 123 highs are that they are more common as most correction forms in a ABC fashion so its harder to be accurate with the 123 highs. So you do get a lot of false signals with them.
Just some thing to be aware of

sorry I meant a 123 high. with a close below 1140 indicating lower prices?

its not a 123 low as it has to come at the bottom of a down trend. This is near the top.
Its also dependant on what time frame your basing it on as well.
if it does finish above 1212 then it should head towards 1311.

look how the gap got filled perfectly on this one .It was resistance.

Remo, is this a 123 low approaching on VED? Trendline has already been broken so potentially this could fall further??