-- Posted Sunday, 26 April 2009 | Digg This Article
| Source: GoldSeek.com
This may help. Any investor in anything is always wishful to buy low and sell at the top. Me, too. I'm always trying to find the ideal pivot points to exercise my trades. I haven't been able to always do this with my low volume OTC junior stocks. I'd like to slap on trailing % stops, but on these juniors you're not permitted this safeguard. Anyway, I use the HUI (and the CDNX - distorted by energy stock jrs, etc). Consequently, see what you think of this setup. At first take, it may appear a little "busy" to the unfamiliar eye.
Scroll down to the main body of the graph, noting the four horizontal blue lines and one purple. We are using the blue lines (4) for our Fibonacci targets. They are scaled upward pointing from 38.2% to 100%. They are retracing the HUI's slide from 514.89 down to 168.68.
Ending this week, the HUI has taken out the 38% threshold and now is expected to approach the 50% marker at an HUI target of 349, or so.
The purple line reflects three data points: 446 on the HUI, 80% Fib target, and a %B (scale left) which tells us how far above the Bollinger Band's mid-marker (red dotted horizontal line).
That additional wavy blue line is a 9-week mov. avg. for the HUI (green line). As you can see the HUI has just crossed over not only its 9-wma line, but also the first Fib threshold of 38%.
Not only that, but the green bars on the MACD closed up. If you want to wait for the SlowSTO to cross black-over-red, that's fine.
Then what are we expecting?
For this bull cycle I expect us to reach the purple line before pulling back and starting its run all over again. This may be the "run-up" before the summer seasonal flat period.
Be sure to put on your protective trailing % stops on the way up to capture profits. Reduce the % as we go higher in line with your own tolerance comfort level.Let the market take you out.
Obviously, I am not a professional investment advisor of any sort, so the risk is all yours.
-- Posted Sunday, 26 April 2009 | Digg This Article | Source: GoldSeek.com
