It's been an eventful two days in SXX and it won't be of any consolation to some but this has been a great example of the importance of waiting for confirmation of a resistance break on close of day.A few days ago the price closed very slightly outside the main downtrend resistance but given the 0.25p minimum spread (approx 1% of the SP) this was hardly convincing and was followed by an immediate failure to stay above. Yesterday's touch of the critical 30p level was also sold off to back below the main trendline which was another warning but the severity of today's drop is still something of a surprise. That said, it's hit RSI support as we can see from the bottom of the chart so there may be some respite tomorrow with a bounce.I'll still wait for a close above 30p to go long on this though as that's...

We'll start this review with a look at the daily chart. My last blog entry suggested there could be bounce off that RSI trendline support. Indeed there was but it was very short-lived. Since then, as can be seen in the highlighted area, the RSI broke through the trendline and has backtested and dropped confirming the break. This is not good unless it quickly breaks back and holds.One thing to look out for is Friday's inside bar (highlighted) though the range is very wide on that so it's risky to trade.The day of the RSI backtest also saw the price drop through, and close below, 2 trendline supports. In fact, that RSI support shown belongs not to either of those price trendlines, but to the trendline lower down from the 2009 lows as we'll see on the following weekly chart as we look towards where this could go. Unsurprisingly, the...

Today Condor Gold confirmed a higher low with a bullish reversal pattern and 83p providing strong support in the last 3 days.Unsurprisingly after the downtrend there's plenty of resistance ahead so my strategy here would be to go long on a close above 95p, with a stop below 83p, as that will form a higher high and a 123-low breakout.We'll have to be careful here though because there's both the next price resistance and the downtrend resistance just ahead of that level so the RSI will be key to see if and where to take profit: if the RSI breaks out of its downtrend before the price does then it could indicate be an early signal to stay long; if the RSI reverses off its trendline then I'd take profit and perhaps also move stops up until a breakout occurs.For a riskier trade we could enter now  Original link...

KAZ formed a higher low at 240.9p a few days ago and closed at the day's high today suggesting further rises tomorrow. There's also been an RSI breakout following a bullish divergence, and a close above 283.9p would mean a 123 low breakout so there's plenty of bullishness here at the moment.Any long entries (whether immediate or on a 123-low trade basis) should have stops below that higher low but mind out for the down channel resistance at 297.5p. I wouldn't be at all surprised to see this gap up tomorrow after such a strong close that could provide a good long entry too. Original link...

HOIL has finally had the RSI breakout I've been waiting for but, perversely, I'm not convinced by it. This is because it came on a down day and it wasn't prior to a price breakout. In my experience, this often leads to false breakouts so despite the apparent higher low, I'd prefer to wait to see what happens at the key 161p level.There's also a gap at 170p to beware too. Having said all that, there is a support not far from Friday's closing price at 127.5p so a long from here with a stop below that may represent good risk/reward. Original link...