SLE

Hi richies82
yep there is a gap where you stated still.



dl.dropboxusercontent.com/u/4899609/sle3rdjuly.png

Richies82 wrote: Nice move today. Am I right in saying there is a gap between 5.2 and 5.4 or did the intraday drop fill this?

Nice move today. Am I right in saying there is a gap between 5.2 and 5.4 or did the intraday drop fill this?

an alternative view :

uk.advfn.com/p.php?pid=chartscreenshotsh...2sMImcLchJJYxTh+kmYp

First time I've looked at SLE, but thought i'd give my view since it clearly has a following.

Looks in very poor shape for longs. Below all main SMA's, negative MACD divergence and well on its way to a full retrace to 4.61 after the recent H&S where the neckline has not backtested yet. Money flow is flooring.

If anything I would be waiting for a bounce off 4.61 since this coincides with the main trendline support, but this down trend looks well entrenched to me.
This company looks sick.....a quick glance at the last operations update tells me that their assets are poor, which fits with the chart.

F4T

Very Clear - Many Thanks for taking the time to explain - Very much appreciated it will really help me to learn.

That first line should have read "two options" not "top options". Lol!

OK, SE. Here are the top options as I see them. First the bull option which I've posted before:



dl.dropboxusercontent.com/u/20815047/SLE..._06_13bulloption.gif

In this case we'd expect it now to rise to something like the recent 8.5p high without too much trouble to form wave 1 of 3 up (it should have 5 mini subwaves). A 50-61% retrace from there to form another higher low and then a break to new highs should follow.

On the other hand, the count could be:



dl.dropboxusercontent.com/u/20815047/SLE..._06_13bearoption.gif

In this case what I'd expect is for the SP to form 3 waves up to about the 61.8% Fib at 7.2p (ie a failure to reach the recent high) and then reverse and start to drop, eventually finding support back at yesterday's low, bouncing and then going through it. The wedge shape of the last rise does tend to suggest this option might be favourite as it could be seen as a bear pennant.

One thing I've often noticed is that, after an initial rise (like we think we're getting now here), if prices drop back to the 50-61% level then it tends to suggest a bullish case. When the initial retrace is less severe, say to the 38-50% level, it's more likely to be a B wave in a corrective move.

So it can actually be more bullish to have a more severe pullback initially.

You can never really know for sure, but they're the sort of things I look for. You can't ever really beat S&Rs and pure price for the best levels to watch, but the form can help give us a clue.

Hope that helps.

PS It's a good example of what I was writing about last night on the sage thread - have 2 correctly labeled options and a strategy for each. That way you're covered and know what you're doing.