17/05/14 – Last week the price dropped below that of the original Wave 1 price and therefore broke a major Elliot Wave Theory Rule. My software has re-labelled the Pivots points, showing that this stock is potentially now in a bearish trend. I have therefore cancelled the BUY order. i just goes to show you cant get in every trade on your Watch List. As below
10/05/14 – The PTI has dropped below 35 and the price has gone below the 0.618 Fib line taken between W2 and W3. This now only gives 5/9 indicators in the green and the potential trade as it stands at the moment is not viable. However I am not removing from the Watch List yet, because if the price rises next week and still holds on to the 0.618 Fib line then it would be at the minimum of 6/9 indicators in the green with the TJ’s Ellipse, Normal, still to trigger. So next week will be critical to this potential trade and I will make the decision next weekend whether or not to cancel the BUY order. As Below
03/05/14 – Last week saw a new low price formed for this stock on the current W4 pull back. A good sign is the TJ’s Ellipse has been taken out at the new W4 extreme , which should act as resistance to further downward movement. Also the Stochastic has started to cross in the Over Sold Zone, which now gives 8/9 indicators in the green, making this a strong High Probability potential trade ( as long as the indicators remain in the green). I have adjusted the Entry point and Stop Loss to compensate for the price action of last weeks bar. The Entry Point is out of the Trend Channel for next weeks bar position (blue vertical Line) and still above the high’s of the last 4 bars (weeks). BUY Order @ 17.10, with the Stop Loss @ 13.85 and no change to the Take Profit Limit Order @ 25.00, As Below
26/04/14 – This Stock was floated on the NYSE in October 2012 and has behaved indicatively as a typical example of an Elliott Bullish 5 wave pattern so far. It has been in a Wave 4 Pull Back since February this year and indicators suggest it has found its Wave 4 extreme low and is looking to push on to for a Wave 5 and a new price high around the 25.00 mark. The Stochastic is poised to cross over in the Over Sold Zone in the next couple of bars (weeks), which will then give me 7/9 indicators in the green for this potential trade.This last week (1 bar) has seen the price initially rise then fall back to close near the open price, forming a Doji with a long upper shadow and short lower shadow, type candlestick (can be seen as the last Red bar on the chart). This indicates indecision in the market where buyers dominated during the session, and bid prices higher. However, sellers later forced prices down from their highs, and the weak close created a long upper shadow. I view this as a neutral pattern after the previous weeks strong positive price action.
Next week’s bar is critical and I would like to see it move towards and close close to the trigger point or in fact trigger the trade. This Stock is not available for margin trading as it is, relatively speaking, a new stock. Therefore this is a simple physical Stock purchase trade and my Strategies for entering the trade do not change, in that i am still looking for 7/9 indicators in the green as a minimum setup and only looking to trigger the BUY order when the price gets out of the Trend Channel.
To that effect I have placed a provisional Stop BUY order @ 17.35 which is out of the trand channel and above both the high of last weeks bar and the Fib 0.25 line. Stop Loss is @ 14.80 with the Take profit Limit Order @ 25.00. These trade order figures may be altered if the trade doesn’t trigger next week or the price makes a new low next week. As Below