So here is a chart I have been looking at due to it being on the watchlist, and I want to see if I can trade this correctly.
My trade analysis goes something like this:>
1. FTSE is in an up trend and so is this share
2. Sector – Mining – is in a bit of a side way movement at the moment, but generally in an Up trend
3. Main chart behaviour – Up trend
4. Trend lines – up trend line and the last resistance line 865 and the previous resistance line 840 – watching for a break back up through 840 then there could be a move of over 100 as the drop so far could go back up to the High of the year of 904
5. Moving Averages, 20 and 50 Exponential, it should be above them in an uptrend
6. Chart patterns looking for reversals or continuations
7. Indicators should be showing buy signals or sell signals. Volumne should be 2 times bigger than normal, MACD 5,35,5 should be accelerating up or down
8. Conclusion – don’t buy it yet, have to wait for it to bounce off the trend line, or break through it.