Allianz Technology Trust PlcOn the above 2-week chart price action has appreciated 1600% since the life cross back in September 2009. A number of reasons now exist to be short, including:
1) A sell signal has printed (shown on 4 month chart below).
2) Confirmed regular bearish divergence.
3) The ‘pi-cycle’ market cycle top alert has trigged, indicating an end to this cycle.
4) The 4-month chart prints a significant bearish engulfing candle.
5) The last time a death cross printed on the 2-week chart price action corrected 75%. The would take price action to 75, which was the previous market top in 2000
Is it possible price action falls further? For sure.
Is it probable? No.
A short from 250 is excellent.
Ww
Type: trade
Risk: n/a
Duration: 2 years
Return: n/a
4 month chart
ATT trade ideas
Allianz Trust is one of the few UK stocks BREAKING !Allianz Technology Trust LSE:ATT has broken out and created a new all-time high.
Price is above the Weekly and Daily 200 moving averages.
What is interesting is that the last time price visited the daily 200 moving average was in July 2016.
Recently price took a trip back to the 200 moving average which is normal when a stock trends well for a long time.
The trip didn't last long and price quickly bounced off the 200 moving average and has since broken through the
previous all-time and now creating new highs.
Because the previous resistance line held strong for a number of months before price managed to break through,
it would be wise to wait and see if price can hold above that level.
The mistake many traders make is to jump in hastily but patience will pay off here. Price can easily dip back below the
resistance so by waiting for the next breakout this will confirm a continuation of the move up.
This is a stock definitely to keep on your watchlist.
Any questions or comments, do not hesitate to leave them below.
Sublime Trading