Sysgroup Share Discussion Threads

[dead cat bounce] 24/9/2002 19:49

energyi - I think your strategy is absolutely correct. The price is entering a consolidation area from Feb to May and taking profits here has to be the right thing to do until the position is clarified.

The chart below is a 2 day per bar chart courtesy of tc2000 (www.tc2000.com) which is the package I use for analysis. The middle window shows one of Worden Brothers proprietary indicators called Balance of Power. It shows buying or selling pressure or the lack thereof. You can see that the rally from 14 to 18 has been on diminishing buying pressure, indicating that it is running out of steam.

The bottom indicator is another one of Wordens called time segmented volume. They recommend a buy when the indicator is above its moving average and both above the centre line. Although the indicator has turned up, its MA is still way below the centre line. Looking at volume, you can see that the rally has not been on convincing volume. As I said, I think your strategy is bang on.





I have great respect for MTG and I would like to know in what way he uses macd, the MAs he mentions and rsi, but for the life of me I cannot see any predictive use in any of the indicators on your chart above, but then I have never been a fan of Bollinger Bands. Maybe I just don't understand them well enough.

dcb

[energyi] 24/9/2002 19:24

Thanks, NC.
I had a nice profit, and Gold metal is near a double top ($328).
So why not bail with a profit?
I do see that ABX has traded at $18.03 since I sold. No matter.

Here's a semi-conductor stock which is on the right side of MA's

Genisys Microchip (GNSS):

[nc] 24/9/2002 19:20

This looks like it's going to be a great thread.

My view (for what it's worth) - there is clear resistance around 18 so good place to sell.

I have a question, which is not directly on thread - why/when do you choose to use options rather than straightforward futures (cfd/s.bet) trade?