Cookie Policy

Chartsview Blog

The Latest Blogs from Chartsview

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Tags
    Tags Displays a list of tags that have been used in the blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Archives
    Archives Contains a list of blog posts that were created previously.
  • Login

GKP daily 19/09/13

by in ChartsView Blog:
  • Font size: Larger Smaller
  • Hits: 22394
  • Subscribe to this entry
  • Print
Depending on your view, the gap stands at either 193p (the high of the previous day - ignore the big green candle low) or at 187.75p which was the close of the previous day. I prefer the latter for determining stops.

In addition, we have the breakout point at 189.75p, the uptrend support which will be at 183.5p today (Fri), the 50% Fib of the 129-240 move at 184.5p, the 50% Fib of 126-240 at 183.2p and the doji from 6th Sept at 184p. Pick you own from that bunch but I'd have a stop below the trendline in case it goes.

If the trendline does break then I'd look to 171p as the 61% Fib of the 126-240 move for a target for wave 2 down from 240p with a stop below 166p.

Looking at RSI we can see that it's almost back at the main uptrend support which adds weight to the 183-193 target area. This RSI support will provide us with a clue as to whether any bounce off the 183-193 area could be just that - a bounce - in that if price is still above the uptrend support but this RSI fails then it will suggest that the lower 171p target is in play.

In summary: look for a bounce off that 183-193 area in conjunction with an RSI bounce. If RSI subsequently fails then look to 171p with stops below 166p.

At this stage we cannot be sure which wave we're in so it's best to use other methods such as standard S&Rs (which we should be using anyway with waves only as a guide).

Little doubt that a new uptrend is in play though, but I would like to see a close above 230p and then 260p to be completely sure!
Trackback URL for this blog entry.


  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest Thursday, 19 May 2022