Hello All:
First time poster here. I'm a full-time trader trying to connect with others, so I started posting forecasts online. I have been posting forecasts on another site, but not getting as much exposure as I'd like, so I decided to come post here as well. Below is my BAC forecast for 3/5/14:
Note that the accompanying chart(s) are Point & Figure (P&F) charts (drawn with Amibroker), which I use almost exclusively to read price action. I am currently in the process of writing some tutorials on their use, as I feel that much of the available information/techniques/etc. that one can find online and elsewhere is of limited use. In the meantime, a very rough-understanding of the them is as follows: the Xs simply show the price at which trading took place, and an X is not drawn unless price changes by a pre-defined amount; a single column indicates price that moves in one direction, and upon a reversal, a new column is started.
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With BAC making a major move today, and given the intermediate-to-longer term trend upward (see the attached chart), it may be tempting to invest. However, the recent price action suggests a very high risk-reward at this point, even though a move upward is still most probable. After the most recent move upward from $15, we have seen a lengthy period of consolidation in the region $16.25 to $17.25. This narrow range of this consolidation, along with a lower support level at $16.25 that has been tested three times and a minor rally to $17 (see again the attached chart), supports this analysis. However, the price is still at the consolidation's resistance level of $17.25. Surpassing this at $17.50 would be the final confirmation of a continued move upward, but at this point, a reaction back to $16.25 would not be abnormal. The risk-reward is thus very high, in fact maximal, at this price point.
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I typically focus on stocks either with a high dollar volume or in the news recently. However, if there are additional ones that you would like me to put on my radar, please let me know.
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DISCLAIMER 1:
This is an independent report created for educational purposes only. It is in no way affiliated with 82 Wall Street or ELITETRADER. No recommendation is being made to invest real money. It is up to you, and only you, to interpret and act upon the information presented.
DISCLAIMER 2:
I am long BAC.
First time poster here. I'm a full-time trader trying to connect with others, so I started posting forecasts online. I have been posting forecasts on another site, but not getting as much exposure as I'd like, so I decided to come post here as well. Below is my BAC forecast for 3/5/14:
Note that the accompanying chart(s) are Point & Figure (P&F) charts (drawn with Amibroker), which I use almost exclusively to read price action. I am currently in the process of writing some tutorials on their use, as I feel that much of the available information/techniques/etc. that one can find online and elsewhere is of limited use. In the meantime, a very rough-understanding of the them is as follows: the Xs simply show the price at which trading took place, and an X is not drawn unless price changes by a pre-defined amount; a single column indicates price that moves in one direction, and upon a reversal, a new column is started.
-----
With BAC making a major move today, and given the intermediate-to-longer term trend upward (see the attached chart), it may be tempting to invest. However, the recent price action suggests a very high risk-reward at this point, even though a move upward is still most probable. After the most recent move upward from $15, we have seen a lengthy period of consolidation in the region $16.25 to $17.25. This narrow range of this consolidation, along with a lower support level at $16.25 that has been tested three times and a minor rally to $17 (see again the attached chart), supports this analysis. However, the price is still at the consolidation's resistance level of $17.25. Surpassing this at $17.50 would be the final confirmation of a continued move upward, but at this point, a reaction back to $16.25 would not be abnormal. The risk-reward is thus very high, in fact maximal, at this price point.
-----
I typically focus on stocks either with a high dollar volume or in the news recently. However, if there are additional ones that you would like me to put on my radar, please let me know.
-----
DISCLAIMER 1:
This is an independent report created for educational purposes only. It is in no way affiliated with 82 Wall Street or ELITETRADER. No recommendation is being made to invest real money. It is up to you, and only you, to interpret and act upon the information presented.
DISCLAIMER 2:
I am long BAC.
