SXX - Jackozy

Hi Jackozy,

You are so so right. Today 18.75 - 19.5p. Quite sometime on 19p-19.75p. I must admit that you are master of trade. I exit 5000 CFG SXX at 19.5p. Me think that this share uncertanty is quite sometime and margin is 25%, and I have to reduce the size.

OG

Jackozy,

Your post 14:18 is very helpful. I feel that I really learn something. Many thanks.

OG,

I wouldn't automatically buy the breakout of the RSI downtrend as it's just not that simple and it's a very short term downtrend so a breakout may be false.

I would automatically buy 19.5p however as that's a known support and a Fib level and perhaps more importantly if you're not a trader but believe in the company's fundamentals it's also a good entry for a longer term hold.

The problem with buying the RSI breakout is that there are clear resistances ahead - the gap and 30p so actually it would make more sense to wait for a break of 30p if 19.5p doesn't come.

Hope that helps.

Hi Jackozy,

In your RSI chart, the highest line declines (bearish div) and the the lowest line ascents (bullish div). Will you buy the bearish div disappear, and bullish div continue? Or will you buy as the sp hit the lowest target 19.5p?

Try to learn from a trader. Can I? I will never be a trader, but for my long entering point in future, I just want to do right thing.

og

Hi OG,

I use the closing price for gaps which I have at 28.75p so if the SP closes above that then the gap resistance has gone or been weakened imho.

Re the bullish RSI divergence, it's shown on the daily chart I posted. I'm afraid that what you've drawn is not a bullish divergence. I'd also be wary of using such short term charts on an AIM stock - they're not very reliable.

The RSI downtrend I refer to is also the steeper one on my chart. It forms from a bearish divergence and that's an important factor in using RSI for me.

There's still a chance of 19.5p so I'm sitting and waiting to see what happens.

Cheers!

Hi Jackozy,

Appreciated your yesterday post, your reply. As you know I am slow learner, so I still ask your favour for enlightening me. Meanly I try to understand your TA and learn something.

1) gap resistance. I checked with my ADVFN, is it the gap between 26.535p and 28.2117p. If the sp is over 28.2117p, you recognise that gap resistance gone.

2) Friday’s low also formed a bullish divergence. Pls see my draw of 15 minutes chart


uk.advfn.com/p.php?pid=chartscreenshotsh...Gwgt+&symbol=L%5ESXX

The red line over RSI 14, the one on right is the trend line for low RSI in past a few days, now it is now up, you call it as low RSI also formed a bullish divergence, right or other meaning?

3) “I'll be looking to see if the RSI can break through the shorter term downtrend.”, which line, the high RSI line, or low RSI line, or channel, and which chart, 15 minutes, 1 hour, 1 day?

This morning, sp went down to 22.5p. I guess that you would like sp down to 19.5p.

I know you may be busy. No worry, when you are a bit free.

og