Bovis Homes Breaks Out As ExpectedBovis Homes has broken out of a strong resistance level which was set back in 2007 at £12.20.
In our previous post we mentioned that we could see a breakout soon. The reason was because we could see price making higher lows leading up to the move towards the resistance level.
We now have that breakout we were expecting so what we need to do next is ensure that this is not a fake breakout. The way we do this is by waiting for another breakout on the daily chart which will tell us that the buyers are stronger than the sellers.
Breakouts are an easy and effective way to determine which direction the market is likely to go.
If there is a second breakout then we may see a strong trend develop following the consolidation. The longer the period of consolidation
the bigger the trend we can expect. As price has been consolidating since August 2015 it would not be surprising if the trend lasts for a year or more but there is no way of predicting that. It would also be nice to see a trend with small pullbacks and frequent breakouts .
This stock should be on your watchlist as the opportunity to trade this may be coming soon.
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EURSEK Pullback!EURSEK was last mentioned in this post after price broke through a resistance level.
Since then price has started to pull back which is a part of trading. If we look at the history of this forex pair, we can see that price tends to use previous areas of resistance as support levels so we will have to see if price will do the same with this recent support level.
If price bounces off support then we should see price move up to create new highs. If the support level is broken then we may see a change in direction or it may just be a deep pullback to another support level before the continuation of the trend. Price may even move down towards the 50 simple moving average.
As the overall trend is bullish and the higher timeframes are showing a bullish bias then we just have to sit back and wait for price to make the next move.
Remember that in order to make profit as a trader we need to cut our losses short and maximize our winning trades. So in this case, if support levels are broken, know when to close the trade and avoid bringing emotions into it.
The next few trading days may determine where price will be heading so we shall have to wait and see.
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NMC Health Breaks Out Again!NMC Health continues to grow as price has broken through yet another resistance level.
When we trade stocks we want price to consistently head up and remain above the 50 & 200 simple moving averages. NMC Health is a prime
example of what we are looking for and has used the 50 sma as support along the way.
Despite this stock having deep pullbacks and despite the periods of consolidation, price eventually does break the resistance levels and
has been trending up ever since they started floating on the stock market in 2012.
The behaviour of a stock is an important detail to take in and normally we prefer to trade stocks with shallow pullbacks and little to no
periods of consolidation. Although this stock does not fit the criteria of what we look for, its consistency is what makes it stand out.
The deep pullbacks also offer us opportunities to enter trades on the pullbacks allowing us to compound when other traders are feeling fearful
and jumping out of the trade, resulting in us maximizing our profit potential.
One other thing to bear in mind when you trade stocks with deep pullbacks is that you will have to be patient as you wait for price
to return back to profit. As I mentioned before, traders run scared when price pulls back but as long as price does not break
through strong support levels then there is nothing to worry about.
Price for this stock is now moving up nicely again but there is a psychological resistance area above in the form of the £40.00 round number.
Let us see how price reacts to this zone.
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EURGBP Fake BreakoutEURGBP broke down through the consolidation support level only to return back to consolidation again.
This forex pair has been in consolidation for some time now and rarely trends, but when it does trend there
is usually a lot of profit for the taking.
At the moment, price is above the Weekly 200 simple moving average and below the Daily 200 simple moving average so this is giving conflicting messages. We want both timeframes to be telling us the same information to have confidence in knowing which way to trade it.
When we are getting mixed message we want to stand aside.
If price can break through the consolidation resistance level then we may see opportunities for long trades but price will first need to move above the Daily 200 simple moving average.
Right now we must stand aside and wait to see which direction price breaks out of the consolidation area.
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Will Tesco Breakout Soon?Tesco is gaining more and more strength as it attempts to release itself from the consolidation zone.
In my previous post here , price had broken through a resistance level.
The next level we need price to break is the resistance level of the consolidation zone. Should price fail to break that level then
price may remain within the consolidation zone for a while longer or it could attempt to break through the consolidation support level.
Price remains above the 50 & 200 simple moving averages on the Weekly and Daily timeframes so the bias is bullish.
Remember that we can not predict which way the market will go and this is why we need a breakout to confirm trend direction.
If price breaks above the resistance level then this gives us the confirmation that there should be more movement to the upside
and puts the odds of a profitable long trade in our favour.
Lets wait and see what happens with Tesco going forward.
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Abcam Breakout!Abcam PLC broke through resistance after going through a period of consolidation and now looks like it wants to retest the support/resistance level.
This stocks has been trending well since July 2014 and although the trend is consistent, this stock does experience periods of deep pullbacks.
When trading a stock with deep pullbacks the trader has to bear this in mind because there will be times when the trade will be in profit
then the profit will be taken back during the pullbacks so there may be a battle of the nerves to hold on until the trend resumes.
Pullbacks are a part of trading and we may prefer to take trades with small pullbacks, but as Abcam has been a consistent growing stock
this can be an exception because over the long term this stock can hand out generous amounts of profit.
You can notice on the daily timeframe that this stock has moved down all the way to touch the 200 simple moving average in the past.
We want a trend to use the 50 simple moving average as support in an uptrend and as resistance in a downtrend.
The fact that this stocks touches the 200sma shouldn't concern a trader as these can be areas to enter a pullback trade,
just as long as the higher timeframe is going in the same direction.
Price is currently above the 50 & 200 simple moving averages on both the Weekly and Daily timeframes so it is showing signs
of continued strength.
One thing to also note is that although a stock may have deep pullbacks, the behaviour of the stock can change over time and
start producing smaller pullbacks so that will be something to watch out for here.
If this stock is traded as a breakout then the stops should be placed wide to account for the deep moves.
At the moment price looks like it is coming back to retest the resistance level it broke through and may use it as support,
and this will become apparent in the near future. If the support area does not hold then we may see price return back
to the consolidation zone.
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Fairfx Group PullbackFairfx Group LSE:FFX may be coming back to retest the £1.00 round, see previous post here.
If that happens then we have to see if price can regain strength and break out.
The overall trend is still bullish and we should not be worried about the pullback, that is natural in a trend.
We are still waiting for a breakout so just apply more patience in order to be rewarded.
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Keywords Studios May Be On The Brink Of A BreakoutKeywords Studios has been going sideways since late last year and when we see
a period of consolidation that lasts for several months, we do not want to enter on the first breakout.
As you can see, the first breakout of consolidation in early March saw price return back into the consolidation zone.
This is classed as a fake breakout. What we want to do as smart traders is patiently wait for a second breakout.
The second breakout helps to confirm the buyers are in control and the probability of price continuing higher are put in out favour.
Price has now broken out of consolidation for the second time so we now need to wait for a breakout of the previous high.
The upwards momentum is looking strong and we may see a breakout soon.
One thing to note is that we have the £20.00 round number not far above price so it will also be worth waiting for price to clear this level.
This is on my watchlist and will be ready to trade at the right time.
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Fairfx Group Has A Big BreakoutFairfx Group has now broken through the £1.00 round number with a strong bullish bar.
I published an idea for this UK stock here where you can see
price was just touching the resistance level at the £1.00 round number level.
This level did cause a brief barrier for price as it hesitated before smashing through that level with a large bullish candle.
The mistake a lot of traders make is to jump into a trade too quickly only to see they have entered on a fake breakout.
The best action for traders to take here is to wait for the next breakout before considering any long trades. We would like to see if price
will stay above the £1.00 psychological level.
Sometimes price comes back to retest round numbers after breaking through them. If we see another breakout then that will
confirm for us that the buyers are winning the battle over the sellers.
This stock may be ready to trade sooner than we think so keep it on your watchlist and take action at the appropriate time.
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Tesco May Be Starting a New UptrendTesco has broken the resistance level. The previous pattern consisted of lower highs and lower lows.
This may now change to higher highs and higher lows and if this is the case then we may see a bull trend form.
We would preferably like to see pullbacks that are not too deep and we want frequent breakouts in an uptrend which would
indicate to us that we are in a strong uptrend.
Price is above the Weekly and Daily 200 simple moving averages which gives us a bullish bias.
On the daily timeframe (not shown) there was a gap up after price broke above the resistance level and if the momentum continues
then we could see a strong uptrend unfold.
Price trended well in the past from 2003 to 2007 from £1.55 to £4.70 so time will tell if price will be able to repeat that trending
period again going forward.
As price has just broken out of consolidation it would be best to wait for another breakout before considering a long trend.
Patience for now as we wait for a trend to form.
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Burford Capital May Be About To BreakoutBurford Capital is still advancing since bouncing off the support level.
Price may not move fast in a direction but as long as it is consistent then we just need to follow our plan.
The plan in this case is to be patient and still wait for a break of the resistance level before entering a long trade.
As you can see, the all-time high is not too far away so we may see an opportunity very soon.
More updates to follow.
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Coca Cola Still Above ResistanceCoca Cola is still holding strong above the resistance level.
If that level continues to hold as support then we could see a potential long trade on the table soon.
The Monthly, Weekly and Daily remain bullish so continue to stay patient before taking a trade.
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USDJPY - The Importance of Having Rules (Pullback Trade)In this video we take a look at another potential pullback trade as well as discuss the importance of having a rules based trading strategy.
Bovis Homes may see a Breakout soon.Bovis Homes has made attempts to break through the strong resistance level in the past
but couldn't quite make it through.
A break of this all-time high at £12.20 created in April 2007 could indicate the beginning of a strong trend.
That breakout confirmation is essential as the high has not been broken after a number of attempts in the past.
We can see price has been making higher lows which tells us that the sellers have not been able to push price lower.
The buyers are holding strong right now and could potentially force price to squeeze through the all-time high real soon.
If we do see a breakout we want to ensure that price has not made a fake breakout so we need to at least wait for a second breakout
to confirm the buyers are able to keep price above that level.
More updates will follow when we have some significant movement.
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Coca Cola Breaks Out Of ResistanceCoca Cola has broken out of resistance which is what we have been waiting for and was mentioned in this post.
The 50 simple moving average helped push price up and through the resistance level.
The next few days/weeks will be important because we have to see whether price can stay above the resistance level.
We sometimes see fake breakouts where price breaks out then moves back below resistance.
What we want to see is price staying above resistance then using it as support and move further to the upside.
As the period of consolidation lasted for several months we may see a strong trend develop potentially giving traders easy profit.
It will be too early to jump into a trade just yet so we must be patient and wait for the next breakout for confirmation
of an uptrend.
Updates will follow when we see more movement.
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Burford Capital Moving Up AgainBurford Capital is showing signs of potentially breaking out after bouncing off the support level
which I mentioned in this post.
This is what we want to see after price breaks out of consolidation, a retest of the consolidation zone then a bounce off that zone,
then a move in the direction of the main trend.
We now just need to confirm a bullish trend may unfold by waiting for a breakout of the resistance level highlighted.
Price looks to be travelling up at a good pace and we may see that breakout soon so it is just a waiting game for now.
Any comments or questions, do not hesitate to leave them below.
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Fairfx is on the RiseFairfx Group Recently broke its previous all-time high which was at £0.88.
After a major area is broken we can expect price to retest that level before advancing which has happened with this stock.
The retest of the support/resistance area gave price some strength to the upside but then found it difficult to break through the
psychological round number £1.00.
This is not to say that price can not break through £1.00 but right now the buyers appear exhausted.
There may be another attempt at breaking through this level so we just need to wait patiently in case this happens.
The Monthly, Weekly and Daily timeframes all suggest bullish behaviour so just waiting for the right time to enter is important.
We do not want to enter too early, so once price clears the £1.00 round number there will be opportunities to trade this stock.
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Fever Tree at SupportFever Tree Drinks is still in an overall uptrend on the monthly and weekly timeframes.
On the daily chart price is above both the 50 and 200 simple moving averages.
As we know the 50 sma is normally used as support in an uptrend and that seems to be the case with this stock.
At the moment price is reacting to the 50 sma and has bounced off that area.
If the buyers can keep up momentum then we may see some further strength to the upside.
The next thing we need to look for is a break above the previous resistance level.
Waiting for breakouts is ideal in most situations because it confirms movement in the direction of the breakout.
If we do have a breakout in price then we can look to open positions in this stock but as for now it is best to stand aside
and wait for price to make the first move.
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3I Infrastructure Approaching Resistance3IN was in a period of consolidation that began in July 2016.
After price broke out of that consolidation zone it used the resistance as support and now looks set to tackle
the next area of resistance.
The resistance level we need price to break is at £2.15 and if it does get through then we may see a trend form
like the trend we saw from 2014 to 2016.
Price is above the 50 and 200 simple moving averages on the daily and weekly timeframes.
Right now the structure of price does not look appealing to trade as price has been moving sideways but a break of the resistance
could change that.
We need to stand aside until we have a clear direction as price could easily return back to the consolidation zone, so we need
to see higher highs and higher lows to confirm we are in an uptrend.
Remember to take the easy path when it comes to trading and easy profits will follow.
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Can Coca Cola's Fizz see it Breakout!?Coca Cola is a household name and a company many investors may be interested in trading and it is potentially
on the verge of breaking out.
On the weekly chart we can see that price has bounced off the 50 simple moving average where it found support.
The sellers were unable to gain control and the buyers forced price to head even higher.
The 200 simple moving average on the daily chart (not shown) was also used as a support area.
Price trended well from 2016 to 2017 so if a breakout does occur then we may see a nice trend follow as it did in the past.
The consolidation area which price is currently held within has lasted for over 5 months so we shouldn't be too quick to enter a trade
if we do see a breakout. Let price confirm that it wants to stay out of the consolidation area and then look for trading opportunities.
As last week was bullish it will be interesting to see how the coming week will perform.
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Collect pips from Elliot wave Step 4 with Moving Averages Collect pips from Elliot wave Step 4
> Expanding MA wave
> H4 HH+ HL
TP - Take profit at last turn around level
^
Entry above reversal bar
^
SL - Stop loss a number of pips under reversal bar
UK FTSE 100 Seeing Some Strength TodayThe FTSE 100 has been bearish for a few months.
Price at the moment is below the 50 and 200 simple moving averages. Price did not look like slowing down but today it has bounced
off a strong support level at £68.75 from May 2013.
Since we are below both moving averages, this bounce does not mean much just yet. For price to become bullish again then
we need a break of the 200 moving average.
It will be interesting to see whether price will close the day bullish in a few hours, if so then it may be a sign that we will at least
have near term strength in this Indice.
Any comments or questions, do not hesitate to leave them below.
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Burford Capital Update on the support levelBurford Capital is still hovering around the support level which I mentioned in this previous post.
It is normal for price to retest the consolidation zone but it is unclear for now whether price will return back to consolidation
or bounce off that zone before moving higher.
The time in which this may happen is not certain right now but what is certain is that we must stand aside.
Remember we are still waiting for the breakout of the 19th March high at £15.38.
Until that happens we need to look for opportunities elsewhere.
Any comments or questions, do not hesitate to leave them below.
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