This is going to be short, if there is that sort of thing in the stock trading game. Notice how I slithered so obviously in that keyword. Very self-serving of me. Actually, I just wanted to see were I had to rein-in my graphic.
I was looking at a weekly chart of last year in the $HUI and notice these common levels, the horizontal blue lines from wall to wall. Then looking closer, they are spaced nearly evenly from the mid-line, which has all the areas circled, the seemingly past sordid encounters that are all leading up to the kiss good-bye, at the blue arrow. Sounds like a seedy bar, but I’m pretty sure we will have our rendez-vous at 530.
Charts courtesy of www.stockcharts.com
Now, if these three lines grouped together don’t get you excited, we have to go back to a smaller version of the fibonacci lines. On the graph at the far right of the last circle, you see some short blue lines. They are grouped in a pattern, the two outer lines are the boundaries of the studied move, and the three between, that is the grouping we are talking about. Are you feeling it yet? The centre line of the three is half way between the boundaries, and the others are equally spaced on each side of the centre.
Now do you get it? That implies a target of 650 ish and a while ago it came up 636 using another set of data. So I’m guessing somewhere between that. The big question is when. Maybe I should fire up some cycle indicators.
This is not a recommendation, it’s my guess, and you would do right to question anything that was said about money.
There is one idea I would like to get you thinking about. To do Technical Analysis properly, you are supposed to pretend you are in a place that has information filtered out except for 5 sets of data that is available for any period of time you want to study. That is the open, high, low, close and volume for a period of time. The rest is noise, just like what I am doing, its noise.
You run the data, read what the indicators are signaling and act as you choose.
Its that simple, just learn to read the language, which is what we talk about at this blog. Anybody can do it, the signals are the same for you, as for me, as for the hedge funds and even the banksters. And when everyone acts together, money flows and markets move. That’s what I want you to teach your kids, so they won’t be suckers for Wall street to prey on. Everything has a market, its not just stocks, its lumber for houses, money for mortgages, potash for food production, oil for vehicles. All have markets. You want to know “what’s goin on” as Marvin said. Learn TA.
Gotta go, take care, may you prosper.
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