ANGI happened to catch my attention on Friday as $22 is a pretty critical level. It looked for sure that the bottom was in and going to start a trend, but the whipsaw leaves us with some uncertainty as it sold off through the rest of the day with the market. For my readers on Stockineer I decided to do a write up and post a chart so I thought I'd share the summary here.
"Look at all these parallel trading channels in the chart below. This gives you very clear entry and exit locations for your trades.
$22 is the breakdown of the head and shoulders pattern, which gives a price target of $16. That is conveniently located at the lowest trendline drawn. Whether or not the recent low will hold or price will drift to the lower trendline is anyone's guess. The best we can do is follow the channels for our trading signals. Of particular interest is the whipsaw on Friday where price was really rockin' only to pull back to retest the neckline leaving shareholders unsure if the breakout was for real or if it is really about to signal failure.
I hate to make guesses, but if I were to take a shot, I'd say that price will rise through the week and test the upper trendline. I say this because the market is at support and I suspect it'll get a rise tomorrow, not breaking support. The weekly stochastics are oversold and have crossed over. MACD has also turned upward. Of course price has to cooperate. This is an interesting chart and will be useful if you want to take some trades on ANGI. If tomorrow's action is too rich for your blood, leave it. Wait until there's more certainty."
Good luck guys. The chart that I'm referencing is on Stockineer, which I obviously can't post here. I hope this helps understand how ANGI trades.
Interesting stuff Sert. I also want to point out that the technical picture is starting to look good again. After tapering down in a consolidation region over the last few weeks, price has now come to a major support line, connecting the valleys in June, August and today's low. Combine this with oversold indicators and it's really ripe for another leg up.
So we've got a couple of bullish pieces of evidence here. Thanks for the post.
For those guys still following the charts. I just posted another on Stockineer a few minutes ago. It's part of the original article and is essentially a running documentation. Here's the text summary but obviously I can't post the chart here:
"YHOO has developed into two parallel trading channels. Prices tend to move in ratios to the previous move and in this case, it’s a good example. Price is now hitting its head on $30 resistance and a breakout should send it back into the upper channel. However, my main concern at this point is the negative divergence that’s been going on for quite some time. Couple that with indicators reaching resistance and it appears that a pullback may be in the cards before a breakout can take root. Of course, follow the price action. A breakout is a breakout. Check out the chart below to see what I’m talking about."
I hope this helps. YHOO's been on a really nice run so congrats guys. Hold onto those profits :-)
Hey guys, I received a request from a reader to do a quick technical look at THI's chart and technicals. I obviously can't post the annotated chart here, but I can paste the quick summary to hopefully aid in your decisions:
"The technical details and discussion are annotated on the chart below. I’m most concerned about the negative divergences occurring. Looking back, almost every major peak was negatively diverging and it’s potentially setting up to be another. Price has risen during these negatively diverging periods so it’s not necessarily a reason to exit immediately, although no one would argue if you were to do so. It’s merely a suggestion to keep a rising stop to protect from a correction. I’ve drawn the trading channel so you can understand the risk/reward. Price is right in the middle so it’s an even ratio, but take a look at the internal trendline I’ve drawn. This could very well represent a location for price to stall, especially with other indicators confirming the RSI trendline resistance, like CCI (not shown, but you could plot it). Also, stochastics are overbought putting better odds in a pullback than a continued run. So that’s my two cents…good luck with your choices."
I posted whole article and chart on Stockineer if you find this sort of thing of value in your investing. Good luck guys....just sharing my two cents.