jesse4livermore
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The chart used for this analysis has all the annotations about classical technical patterns, which by the way are the more accurate on TIWI historical moves.
Long term Alert:
Last week, the main support for TIWI bull move has been broken. I’m talking about the ascending support, that was protecting the stock since March 2003.
This important reference breakdown triggered a powerful selling technical signal that for itself is already everything…
But anyway, we should check all the other technical aspects of TWI in order to accomplish some conclusions…. Let’s look to the mid term and short term patterns…
Mid Term:
Since last February that TIWI is trading downwards, having successive lower highs on every rebound. This situation has created a strong pattern which is working since March, I’m talking about a descending Channel, with 3 downside contacts and 2 upside reactions. The last contact was on upside, $11 two weeks ago, so the next test should be on the bottom of the channel, which is the $6.65 level.
On the way, the last low was almost the same has the one before, so the $8.25 level has generated an intermediate support level that we should consider for the next days / weeks.
Short Term:
The last reaction on the $8.25 support started what could be a rebound… The momentum indicators were very oversold, and triggered short term buying signals (Dynamic Momentum Indicator).
Considering the broken long term support as reference (Long term secrets for short term trading), the target for this rebound (?) could be the $9.80 level with possible spikes to $10.50 (top of the channel)
In a more negative short term scenario, the $8.25 could be broken, generating a fast move directly to the 6.65 price level.
Note that both ema50 and ema200 are near the coast, and both acting as resistance levels…
My Trading Plan:
I’m short since last week breakdown, using the $10.50 as stop level, and the $6.65 has target for closing the position.
If the short term rebound goes above $9.50, I’ll be reinforcing my short position until my stop level.
Below $8.25 I'll change my stop price, for a trailing stop of max drawdown of $0.75
My best regards,
Long term Alert:
Last week, the main support for TIWI bull move has been broken. I’m talking about the ascending support, that was protecting the stock since March 2003.
This important reference breakdown triggered a powerful selling technical signal that for itself is already everything…
But anyway, we should check all the other technical aspects of TWI in order to accomplish some conclusions…. Let’s look to the mid term and short term patterns…
Mid Term:
Since last February that TIWI is trading downwards, having successive lower highs on every rebound. This situation has created a strong pattern which is working since March, I’m talking about a descending Channel, with 3 downside contacts and 2 upside reactions. The last contact was on upside, $11 two weeks ago, so the next test should be on the bottom of the channel, which is the $6.65 level.
On the way, the last low was almost the same has the one before, so the $8.25 level has generated an intermediate support level that we should consider for the next days / weeks.
Short Term:
The last reaction on the $8.25 support started what could be a rebound… The momentum indicators were very oversold, and triggered short term buying signals (Dynamic Momentum Indicator).
Considering the broken long term support as reference (Long term secrets for short term trading), the target for this rebound (?) could be the $9.80 level with possible spikes to $10.50 (top of the channel)
In a more negative short term scenario, the $8.25 could be broken, generating a fast move directly to the 6.65 price level.
Note that both ema50 and ema200 are near the coast, and both acting as resistance levels…
My Trading Plan:
I’m short since last week breakdown, using the $10.50 as stop level, and the $6.65 has target for closing the position.
If the short term rebound goes above $9.50, I’ll be reinforcing my short position until my stop level.
Below $8.25 I'll change my stop price, for a trailing stop of max drawdown of $0.75
My best regards,
