LSE:SVT possible trend reversal(?) [Part 2]
On July 8, I posted an idea suggesting that I could see a possible trend change on LSE:SVT. The closing S.P. on the last trading day (Jul 6) was 2208.0
Since then the S.P. has risen with the last closing S.P. (Jul 13) at 2233.0. The bearish engulfing candlestick (Jul 10) did make me think that maybe I'd been suckered and that the trend change could end early. However the following day (Jul 11) a doji formed which is generally seen as the market being a bit "indecisive" and the next two days are showing a healthy rise in S.P.
Now, please forgive me if I do not follow the "standard accepted protocol" when it comes to drawing trendlines. The way I draw trendlines is to try and link as many OPENs together (top trendline) and CLOSEs together (bottom trendline). I deliberately IGNORE the HIGH and LOW prices when drawing trendlines (but not when doing price projections). The reason is that OPEN and CLOSE prices (especially CLOSE prices) are the price that traders are "comfortable" with leaving their money in the market.
With that out the way I can say that I think that the overall trend for LSE:SVT has changed to an uptrend and the trend that is forming is best described by Thomas Bulkowski as an "Ascending Broadening Wedge"[1]. It hasn't got the requisite number of candlestick touch points yet to be properly qualified as such but it does appear to be forming that way.
With the stochastics showing both %K and %D above 20, I'm currently quite comfortable that the S.P. is most likely to rise in the near future.
The target level I think to be looking for are (still) 2305, 2473 and 2577 with the caveat that there will be a drop in the S.P. on 21 Jul as that' when a final dividend is paid. 21 Jul may also be the date when the current trend setup is most likely to change.
I'm fully aware that I could need new lenses in my glasses or that I'm looking at this in the wrong way. Any comments, suggestions or advice are gratefully accepted.
All the best, be lucky!
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[1] Bulkowski's Ascending Broadening Wedge : thepatternsite.com/abw.html
Since then the S.P. has risen with the last closing S.P. (Jul 13) at 2233.0. The bearish engulfing candlestick (Jul 10) did make me think that maybe I'd been suckered and that the trend change could end early. However the following day (Jul 11) a doji formed which is generally seen as the market being a bit "indecisive" and the next two days are showing a healthy rise in S.P.
Now, please forgive me if I do not follow the "standard accepted protocol" when it comes to drawing trendlines. The way I draw trendlines is to try and link as many OPENs together (top trendline) and CLOSEs together (bottom trendline). I deliberately IGNORE the HIGH and LOW prices when drawing trendlines (but not when doing price projections). The reason is that OPEN and CLOSE prices (especially CLOSE prices) are the price that traders are "comfortable" with leaving their money in the market.
With that out the way I can say that I think that the overall trend for LSE:SVT has changed to an uptrend and the trend that is forming is best described by Thomas Bulkowski as an "Ascending Broadening Wedge"[1]. It hasn't got the requisite number of candlestick touch points yet to be properly qualified as such but it does appear to be forming that way.
With the stochastics showing both %K and %D above 20, I'm currently quite comfortable that the S.P. is most likely to rise in the near future.
The target level I think to be looking for are (still) 2305, 2473 and 2577 with the caveat that there will be a drop in the S.P. on 21 Jul as that' when a final dividend is paid. 21 Jul may also be the date when the current trend setup is most likely to change.
I'm fully aware that I could need new lenses in my glasses or that I'm looking at this in the wrong way. Any comments, suggestions or advice are gratefully accepted.
All the best, be lucky!
==========
[1] Bulkowski's Ascending Broadening Wedge : thepatternsite.com/abw.html
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