SAB Miller Key Technical Buy?

[phoenix25140]

Opinions on this trade I have in mind guys, poor european weather caused the drop to here, however the last few weeks/ month have provided many sunny periods. Start of the UK football season also.

 

[malaguti]

Opinions on this trade I have in mind guys, poor european weather caused the drop to here, however the last few weeks/ month have provided many sunny periods. Start of the UK football season also.

if it breaks out past the 3300 mark you have something ready to challenge the last hgh, until then you have a stock ready to plunge another 1000 points.
I'd be waiting for a turnaround first, and I wouldn't be relying on those arbitrary lines for support.
is how i see it at least

 

[barjon]

Went into swing downtrend when earlier support zone (which has since become resistance) went in June. Ranging since then and just made its second lowest close since the 3011 on 24 June. Probably go with the market for a bit - its not showing much independent thought at the moment.

 

[phoenix25140]

The trade for me is to wait for the bounce Monday, i like the technicals here.

Barjon, do you use any indicators to confirm reversals in a channel like this?

 

[barjon]

.............Barjon, do you use any indicators to confirm reversals in a channel like this?...............

No, in my view waiting for confirmation generally means you are too late into the fray. So, trading a range like this, I'd usually just make an assumption that it would bounce from the bottom of the range and get out pretty sharpish if it didn't pan out.

I won't be trading SAB here but, if I were, then I'd be noting that the DOW finished about 20 points down from where it was at FTSE close so I wouldn't be expecting a strong FTSE opening (assuming no dramatics from Asian session) and maybe a small gap. If SAB gapped a little lower I would wait for it to go above Fridays close before taking a chance.