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LSE:TW – Symmetrical Triangle

– Today TW. closed above descending trendline on volume
– Outperforming FTSE100
– Medium/Short-term trends are bullish
SUPPORT: 50eMA and ascending trendline
RESISTANCE: Historical level around 55
ENTRY: Live at market (assuming no Gap up tomorrow) or look for intraday retracement towards descending trendline
STOP: Beneath Tuesday’s candle around 49.5 or the 50eMA around 48.9
TARGET: 56 or 59, depending on how you decide to measure your triangles.

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LSE:DEB – Ascending Triangle

Trend:        
– Short/Medium-Term bullish
– Established ascending trendline
– Trading above 8/21/50/200eMA’s
Volume:      
– Volume Profile shows heavy volume around 81 and 78.5, providing likely support levels
– Note the contracting volume over the last 3 sessions – this can be a character of breakouts, but we’d want to see an increase in volume to confirm the breakout
Target:
– Point & Figure Chart (P&F) projects approximate target of 90.5 and confirm Triple Top breakout
– Ascending Triangle projects approximate target around 90.3 (also note that intraday looks like an inverted Head and Shoulders continuation pattern)
– The 90’s would be the minimum target, but also note the historical swing high (and psychological round number) of 100 as a potential target
Conclusion:
– A break below the trendline would invalidate the setup, but we’d need to see a close beneath the 8/21 eMA’s to warn of a short-term reversal
– Ideally we want to see a close above 83.9 on higher volume to confirm the breakout, but a more conservative approach could be to see if this level becomes support before entering long (and achieving a higher reward/risk)
– Otherwise beneath 81 is a sensible stop-loss level

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LSE:SPD – CHANNEL BREAKOUT

Sports Direct International (LSE:SPD) broke out of the channel to the upside on Friday to continue the medium and short-term bullish trend.
The bullish view is supported by price trading above the 50/200eMA’s and cloud (see Ichimoku chart) whilst volume and OBV (on balance volume) confirm buying pressure on the breakout itself. Another bullish confluence can be seen on the P&F ‘Spread Triple Top’ which also generated a buy signal above 295.
ENTRY: Live at market (assuming we don’t gap up) or wait for a retracement around 300
CONSERVATIVE STOP: Beneath the Hanging Man candle and 50eMA around 279
AGGRESSIVE STOP: Beneath Thursday’s candle around 288
TARGET: 330 (Channel projection)

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LSE:BARC – Bearish Pennant

– Bearish pennant appears to be forming with price currently trading beneath the 50/200eMA
– Ratio line between Barclays and FTSE100 broke its ascending trendline which shows Barclays is under-performing against FTSE
– Pennants can be messy patterns to trade and may require continual adjustment of the trendlines as the pattern evolves
– However if we see a clean break on heavy volume either intraday or EOD of day we can look to enter short and target the 175 area.
– Stops can be above 223 or lower, depending on how price breaks out (ie if we see a breakaway gap to the downside then use the gap to place your stop for a tighter reward/risk)

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FTSE100 – Quick Overview

The longer-term
– FTSE does appear to be struggling to get above 6100.
– Monthly candles look bearish in this area and the 40/80 day cycles, OBV and MACD make any solid gains look bleak.
– Only a convincing break above 6100 area would invalidate the bearish cycles – I’ve found these to be quite reliable in the past.

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BSKYB (LSE:BSY)

– Today’s close beneath the ascending trendline/neckline appears to confirm the inverted H&S pattern (continuation)
– If the trendline holds as resistance then an interim target will probably be the 600-615 area
– The pattern projects a minimum target of around 550
– Note the potential support level around 654 – if this breaks then next level IMO is 600-615

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LSE:OCDO

– High volume Doji confirms support around 114
– We could retest resistance around 134
– Rising ratio line shows how the stock is gaining strength in relation to the FTSE100
– If 114 support holds it could provide intraday and EOD opportunities

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LSE:DXNS – Initial Target Hit

Initial target of 17.9 hit where price has now stalled, producing a ‘Riskshaw Man’ Doji. Next Target on P&F Vertical Count is around 27.5 but a sensible interim target would be the swing high/lows around 20

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LSE:DXNS – (Dixons Retail PLC)

Following up from my post LSE:DXNS on 11th Jan – we had the upside breakout much earlier than anticipated (4 days later) and as of Friday confirmed an ascending triangle by closing just above the 15.5 resistance level and OBV.
The original trade idea came with a breakaway gap and broke the descending trendline from May 2010.

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LSE:TLW Swing Trade

This swing trade was scanned 2 days ago but I wanted to see a 2nd bullish bar to form, to confirm the support.
Friday produced a “Morning Star Reversal” pattern at support (a reliable bullish signal)
– ENTER: Above Friday’s candle
– STOP: beneath 1471 (prior resistance has now been confirmed as support)
– 1st TARGET: Recent swing high and round number of 1600
– 2nd TARGET: The larger pattern appears to be an ascending triangle forming which projects a target around 1720

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