XEL

123 breakout today?

uk.advfn.com/p.php?pid=chartscreenshotsh...BqjYvRqOAfGpCCcElJS+

Nice symmetrical triangle on this one. We did have a bounce off the 61.8% retracement level the other day but IMO we will likely find the triangle support next rather than a breakout north, so an entry around 95p would seem preferable but note that this eventuality brings the possibility of a full retracement to 88/89.

Note also that we have just completed a H&S formation (neckline in magenta on chart). This is flirting with a break currently which firms up a likely move south.

IMO wait for a break south and buy the trendline support with tight stops.

F4T

I've taken a small and risky long on this due to the RSI trendline from the bullish divergence and 61.8% Fib of the last rise:



dl.dropboxusercontent.com/u/20815047/FTS...XELdaily13_06_13.gif

The reason I say this is risky is down to the form of the chart - it looks to have had 5 waves down followed by 3 waves up so it looks bearish hence my tight stop just below the 98p level.

H1 chart from Friday shows a clear 5 waves up...
At least that is impulsive
Like Jackozy says, get a retrace trade set up and wait for a great price to get in..
Just be mindful of the big resistance above. There will be plenty of a time to scale into a trade, so you could definitely start small and still make big gains....IF this gets going

Whatever happens, it ain't gonna go in a straight line so I'd wait for a retrace.

If the retrace forms a higher low then a higher high, enter long on the 123-low breakout.

If the retrace forms a higher low then a lower high, enter short on a break of the higher low.

If the retrace goes below 88.75p go short on that break.

There's no point chasing it now. It's put on 22p or 25% since 88.75p and the 61.8% Fib's nearby. It'll have to come back at some point (famous last words lol!)

here you go...



dl.dropboxusercontent.com/u/40497882/Xel_Daily_21%20may%20.JPG