| Welcome Guest, please sign in to participate in a discussion. | Search | Active Topics | |
Registered User
Joined: 5/17/2005
Posts: 221
|
I found this perfect lateral channel in my scans for the weekend. GRA ....WR Grace ..they make a lot of products for all industrial and construction sectors. You cannot see the set up on the daily and have to look at the weekly chart. It is trading between 6.8 to 11.8. This year it has completed 2 waves and is currently 50 % through the third wave ....that would have equated to over 200 % profit if you had bought long and short !!!! even now buying in the middle of the third wave will get you a potential of 20 % in the next 10 days.
|
|
Registered User
Joined: 5/17/2005
Posts: 221
|
I thought I would pull this one to everyone's attention again. Since my first posting , when the stocks was at 9 it slowly but surely climbed the hill to a high of 13.95 (55% profit in 7 weeks ). It is since pulled back and has formed a Doji right on it's 50 day MA. This stock is 77 % institutional owned. As most of you know they use the 50 day MA as an entry position into the stock. For those of you who follow elliot wave analysis it has completed wave 5 of a sideways trend and is consolidating at the top of the trend, indicating that it may break out and trade higher.
|
|
Registered User
Joined: 12/8/2004
Posts: 1,301
|
I totally agree it has completed wave 5. Wouldn't some kind of clearly defined correction wave now be in order, before a new series of wave develops?
|
|
Registered User
Joined: 3/12/2005
Posts: 17
|
My Advanced GET softwave doesn't see a EW count since last fall unless I use the Aggressive settings and then it says that it is in a Wave 4 down, but unlikely to make a Wave 5 up.
A daily chart shows that it bounced off the 50 bar SMA on Friday, however, a 2-day chart shows that it is in the middle of a Snap Back Down (see First Wave Club). I am going to watch what it does Monday. If it breaks the 50 SMA at 10.26, then I think it is going down. Note the 200 SMA is at 9.17.
|
|
Registered User
Joined: 12/2/2004
Posts: 1,775
|
malcolmb, differernt strokes for different folks, I don't like the setup at all. But I'm not saying your thesis is without merit or that mine has more validity. It just goes to show you the different styles of method when dissecting a chart. In a nutshell I personally don't like the pattern (on the daily chart) because I put great emphasis on recent volume. The pullback chart play is one of my very favorites, and at first glance GRA shows a picture perfect pullback to the 50ma. But during the 5-day pullback the volume has been huge, and that's the sticking point for me. My method simply says the pullback should come on obvious lower volume vs. the high volume during the upward spike. Also the pullback retraced all of the recent breakout; would have preferred that it didn't do that, with the year old resistance (now support) of about 11.75 holding and acting as strong support. Will be interesting to see how GRA plays out in days ahead. I wouldn't be surprised to see a small or moderate bounce since it's so oversold. Like I say, maybe your analysis is best, but mine says to quickly move on and find a better looking setup for my personal taste. Cheers.
|
|
Registered User
Joined: 12/8/2004
Posts: 1,301
|
QUOTE (fpetry) malcolmb, differernt strokes for different folks, I don't like the setup at all. But I'm not saying your thesis is without merit or that mine has more validity. It just goes to show you the different styles of method when dissecting a chart. In a nutshell I personally don't like the pattern (on the daily chart) because I put great emphasis on recent volume. The pullback chart play is one of my very favorites, and at first glance GRA shows a picture perfect pullback to the 50ma. But during the 5-day pullback the volume has been huge, and that's the sticking point for me. My method simply says the pullback should come on obvious lower volume vs. the high volume during the upward spike. Also the pullback retraced all of the recent breakout; would have preferred that it didn't do that, with the year old resistance (now support) of about 11.75 holding and acting as strong support. Will be interesting to see how GRA plays out in days ahead. I wouldn't be surprised to see a small or moderate bounce since it's so oversold. Like I say, maybe your analysis is best, but mine says to quickly move on and find a better looking setup for my personal taste. Cheers.
Fpetry, I agree. A normal pullback occurs on lower than average volume.
|
|
|
Guest-1 |