Big Yellow Group

Hi, I am pleased that Big Yellow has caught your eye. I have had some good success with this trading a nice daily channel in the last couple of months. I too have been wondering what's going on with it at the moment. It has reached some heavy resistance now but it did punch right through it on Thursday I think it was. What I would like to know is what is the best way to tell if it is likely to continue on the up as opposed to sinking back down again ? I know that there are no certainties and only probabilities. For example the RSI is right at the top therefore usually that would put me off buying.

So what are the pointers I should look out for ?

I know that this is a bit of a beginners type question but do bear with me please. BYG is a bit of a favourite of mine and has been good to me on the whole. I would like to think its on the up.

Thanks

gclark25
if it does break past 360 area it could fly so your stop is spot on.
id short on first attempt at 360 with a very tight stop, or wait for a breakout then go long on any back test with a tight stop. So one to watch. This area has some serious resistance attached to it so would take something special to push through. This has been tested at least 5 times just on the weekly chart.Also this area is where it broke down in dec 2009 via a head and shoulder formation(if you look carefully) SO a very important level.
good spot mate and good technicals

A potential trade here I reckon. Looking like a potential reversal of a medium termed up trend.
Seems to be having some trouble breaking a previous key resistance.






Longer term weekly view shows the resistance fairly well. Also note the bearish diverging RSI.
Would like to see the opening candle on the daily chart on Monday.

Fairly good risk to reward on this trade I would say - I would place any stop @ 366 or above.
Multiple target prices.

possible channel play @ 312

There are also some clearer shorter termed targets on the daily:






You could argue that it has had 3 goes at resistance, certainly 2 resistance rejections.

Target prices given on this chart, imo are:

Channel support @ C.331 (conservative - although could take a weight off)
331 however is also a previous short termed S&R level
38% fib @ circa 325
50% fib C. 315 (which is also near enough to a few S&R levels - mainly 312 below it and 317 above it)

In summary, would probably go for a weighted trade on this one although there is an argument to leave a last weighted "greedy" trade on for just below 280's where previous support lies.

Course there is always the chance that it breaks current resistance on the way up next week. Just a thought though - anyone else agree/disagree?