PX: Good scenario for trading

Philex Mining is trading sideways for almost a year now. I've been cost averaging since then. Happy anniversary to my shares! :)

It'll be frugal to buy PHP 23.00 and below. Cut price when 200MA and RSI Support breaks. This might probably be around PHP 22.50. A conservative TP is PHP 26.00.

The good points here are:

• Daily Chart, 50 MA is above 200MAthough 50MA is acting as resistance.
• EW, possible triangle ending pattern.
• Weekly price is supported by 50MA and RSI is nearing support.

 

With bearish divergences being persistent in indices world wide, will gold have it's comeback?

LR breathes for air

So have you sold your positions last friday? If you're asking me, I haven't. I held mine. And yes, there is that feeling of "I should have sold it". I didn't follow my system thus, I lost that 7-8% difference and gratification has delayed.

What I learned from this? Two things.. The solution I am formulating right now really WORKS and I must follow my system!

Here are the facts and my opinions.

1. LR's move last friday stopped at 100% fibo of a.
• Probably the trend may still continue until it  touch 50% or 61.8% of b' retracement.
2. LR didn't able to penetrate 70 RSI.
• Watch RSI's Support wall for a possible bounce. Considering it's distance and market's psychology. Php 8.00 is a good price for support.
3. RSI Daily > RSI Weekly.
• Last Friday's Action probably happened to neutralize the difference.
4. Price is reaching 50 MA in weekly chart. (See chart below)
• Another support but in weekly basis. 
• 50 RSI in weekly chart may act as a support as well.

Based on these, my actions will be:

• SELL positions IF the price reach Php 9.00 and the resistance will still exists then BUY back at established supports in retracements.
• HOLD my shares IF price will not manage to test resistances. BUY on future established supports. (Peso Cost Averaging)
• SELL ALL my shares IF no supports will be established.

Check! playing poker with LR.

       When the odds for winning a game in poker is unsure, I would check and wait for my opponents to take their action. The same case for me right now in LR. I need to see its next move before I proceed.

       My last play with LR was in the late of Feb 2012. The signal that caught me was the strong bounce and the gap up that followed the next day. Somehow I earned from that trade. It was this May that it got caught by my radar again. But this time, it will be a whole new different approach. My Elliot pattern reading has been fortified with Spyfrat's System. So here it goes..

LR has developed an RSI support at 37 RSI since then on, I started to buy positions whenever it touches and bounces from the support. My cut loss point was set on the break of that RSI line. See LR's daily chart below.

The bounce was really amazing! I wasn't even expecting that much at all. In Elliot Theory, this kind of bounce means something. I am not yet sure if the correction will still continue or it's just indicating the end of the triangle. This scenario made me quite cautious and indecisive.

Technically, It's about to reach the "taste-the-profit zone" (PHP 8.8 to PHP 9.0) and it will be a sell. It's RSI in weekly chart is hitting the resistance. The thing that makes me confuse is the market's response! It might just not stop on the zone and obviously, I'm being greedy.


So, the action based on the system. Refer to the chart below.

1. Taste-the-profit in the zone and wait for her action for the week if it still goes up.
2. If it goes down, we may test the channel and add if it holds at PHP 8.25 to PHP 8.10. However, the system would not encourage us to add more since it would just be approximately 10% to the Selling Zone.
3. If it goes down and breaks the trend line but finds support in the buy zone. Test the water because it may stay on the RSI SUPPORT.

We'll win the pot (conservatively PHP10) if LR will break its RSI and PRICE RESISTANCE. We might also  have opportunities to enter on new dips.
 

In loooong term, I am bullish with LR because it could be still on its 2nd corrective wave just after the double correction formation in 2010.

Don't focus on the forecast yet, wait for LR's action and just trade the market.

Happy Gaming! Share the Love!

Setting up for GERI's Last Leg Up

Well, I am not yet sure if this will be Global-Estate Resorts, Inc. (GERI)'s last leg but observing it's pattern from 2009, she is positioning for a Wave 5 according to Elliot Impulsive Pattern.

The target is PHP 2.8 to it previous all time high, (PHP 3.30ish?). This is measured 38.2% -to 61.8% from  Jan 2009 to Aug 2011.

Notice that the price levels at wave 4 of the previous impulsive pattern (extended wave 3) holds as a support for the current price and the bullish divergence that happened from mid-May to early-June this year.

It would be great to buy near 1.80 - 1.70. Cut at 1.65 if buying window broke.

Oh! also note that 50MA may act as a resistance.

Tasting Profits from MEG

Megaworld as of now had hit my "Taste the Profit" Signal. My developing system serves me right somehow.

I bought a lot of MEG, while it was consolidating last month, as it hits my buying box. I was confident because the RSI WALL serves well doing the support. I don't worry much if it breaks since I set my cutloss point at 1.85.

Why Taste the Profit? Because my system told me so. If we check its RSI in daily and weekly chart, It is noticeable that both are reaching their RSI resistances. Take note especially of the RSI WALL in the weekly chart as it may signify reversal. It suggest that the people is finding MEG expensive... technically speaking.

Our "Take profit" signal will be triggered when a bearish candle that strongly signifies a downward sentiment appears. There is no figure that is set for that signal because I myself is not yet sure if MEG is poising for a clear reversal.

We'll see the revelation tomorrow. I hope that the RSI resistance will break.