GKP

Richard,

personally I don't use the 5 sma's, so don't know how they perform/how widely they are used. 20sma is widely used so is usually effective.

Obviously the more users the more effective the indicator. I always run with the crowd as it is the crowd that drives the market.

F4T

Hi All

Can I just ask a quick question.

I am looking at another stock which is trading below the 5 SMA/DMA. Is this a strong resistance level or is it better to look at the monthly/20 SMA resistances?

The stock is SOLG - closed at 5.99p, 5 SMA/DMA is 6.29p and monthly resistance and 20 SMA/DMA is 6.53p

Hope you guys dont mind me asking this on here.

Thanks

Richard

Thought i'd look at the longer timeframes since it is my opinion that the current run up on the daily is done. If it isn't done, then some of the following can be disregarded.

uk.advfn.com/p.php?pid=chartscreenshotsh...Rpn8RZGcnZplc5n7k%3D

Firstly, the monthly shows the continuing downtrend clearly. Although the falling wedge has some daylight above on the chart, the RSI is at resistance. This is caused by positive divergence, also clear on money flow index. SP needs to beat 100 in September before downtrend can be tested again.

uk.advfn.com/p.php?pid=chartscreenshotsh...V8%3D&symbol=A%5EAPT

Close up on the weekly shows us that we have retraced 50% of the fall from 116, a nice place to stall. The breakout from the falling wedge is still valid and in play. The breakout point upwards on my daily was at 75.50 and one can see that it is possible to retrace to that mark on the weekly and still maintain the wider breakout. This could happen next week (but not before) and form a nice backtest on the higher trendline, giving an opportunity for the next rise.

Note that we are at RSI resistance currently on weekly. A retrace to 75.50 might take this to the lower support line and further into the apex. A bounce here might then propel us through RSI resistnece next time resulting in a stronger rise next time round, closer to 100 maybe. This might happen in a week or two's time.

That is my current forward thinking of what might happen going forward. I will wait for 75.50 or a break of 90, being our support resistance levels currently, before acting.

Currently on the daily we had a bearish descending hawk pattern (a new one for me also!) followed by an engulfing pattern which should take SP to 80 and below.

GL
F4T

I'm not competing with you F4T. Not sure where you got that idea from
I've got no chance anyway. lol
Appreciate your thoughts as always.

good weekend.
ATB,
Trendfriend

Thank you F4T

I have actually made some cash and it is thanks to your analysis.

Thank you for your continued posts. Have a good weekend.

It has been a very good day TF, thanks. If you read my earlier posts I was expecting a retrace from todays highs and a close around the 85 mark with a bearish candlestick pattern. The move is overextended. It's all there. That is bearish.

If pushed and having seen today's action in full, we might see 75.50 again before 90 again, being a 50% retrace of the whole move. My reasons for this view. This rise overextended. Indices are at resistance, here and in US. We need a leg down and stocks likely to follow.

I post my views to help people if I can, not to compete.

GL All, and hope most made some cash on this this week.

F4T

Trendfriend wrote: uk.advfn.com/p.php?pid=chartscreenshotsh...w78w=&symbol=L%5EGKP

uk.advfn.com/p.php?pid=chartscreenshotsh...v3AE=&symbol=L%5EGKP

Whats the next move here?
Bottom of the descending trendline?
I hope folks managed to close positions in time here.

You still bullish F4T?

good weekend folks
Regards,
Trendfriend