Chart of the Week
Chart of the Week's columns :
06/12/2005BT Group >>
18/11/2005BT Group
01/11/2005A.B.Food
20/10/2005Kelda Group
29/09/2005Corus Group
14/09/2005Oil and Petrol Prices
01/09/2005NASDAQ Futures
08/08/2005Rentokil Undervalued for Too Long
28/07/2005Cable and Wireless
20/07/2005William Morrison PLC

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Chart of the Week – Trading the Technicals with a LITE touch

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BT Group

06/12/2005

British Telecom has been good to us of late as far as the technicals are concerned: The candles have been an excellent indicator of the short term turning points, and while were unsure that the current rises in the overall market are sustainable, this one seems to be playing its own tune, so is a safe bet.

We suggested this as a long on November 18th when they were 208. Our target was 217-18. We got here on November 25th, at which point the reversal candles started appearing. As you can see this topping out happened at a short term downtrend resistance line as well.

The killer blow from a candle point of view was the strong 'Bearish Engulfing Pattern' posted last Tuesday and Wednesday, with Wednesdays large red real body engulfing or surrounding Tuesdays strong 'green' session. Weve confirmed this patterns reversal potential subsequently, and so were now looking for a retest of 200-201, the recent 2X low 'zone'.


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