Wednesday, 11 July 2012

EBAY: Stopped Out . Position Closed

My Long Trade was stopped out after the price dropped below the previous pivot point low.
This still has the potential to keep rising if the price breaks out from the current down-sloping Flag Pattern.

Tuesday, 10 July 2012

Whole Sale Food Market (WFM)

Possible Long:

Whole Sale Food Market (WFM) is in an UP Trend .

I have highlighted this chart as the current price action has formed a PENNANT Pattern which may indicate that further price increases are possible.

If price breaks out above the upper trend line then this would validate a LONG BUY position based on a breakout from the pennant.

I have this on my watch list

EBAY. Testing Support

Trade Update:

EBAY  share price has lost momentum recently since the breakout from the Ascending Triangle I described in earlier posts.
It is currently testing the support level of $40. The recent downward trend in prices has formed a Flag Pattern as described on the chart. 

Normally a Flag Pattern is a continuation pattern in a rising uptrend.

If prices can hold above the  $40 support level a breakout of price above the upper downsloping trendline of the Flag should then see a resumption of the trend to the upside with an increase in share prices.

Sunday, 8 July 2012

EBAY Trade Update

Below is a chart of EBAY and an update on my trade
I went long ( BUY) once the price broke through the resistance level
The chart was showing an Ascending Triangle in an uptrend with a break of the upper resistance
This is normally a continuation pattern in chart technical analysis
As the chart below shows there was bearish price activity this past week
My trade is still open , I have put my stops below the previous pivot low of $39.50.
I am expecting the price to rebound next week off the rising trendline as depicted by the large white UP Arrow.
If the price falls below the trendline and the prior low then the trade is no longer valid and I will be out of EBAY.
I will keep readers posted