SXX

My stop loss got hit in the opening auction this am and I managed to get back in at that uptrend support.

The thing is, it gapped down out of the little ascending triangle so that gap and previous triangle support should now become resistance.

Bit hard to tell what's going to happen now IMHO. I plan to close my long from 25p today at the gap (if I get chance) and wait to see if there can be a close above 30p. That'll be my queue to go long again, that or much lower down if it goes that way.

I was a bit surprised as this has always followed the technicals quite nicely. Just shows that you can never be 100% sure and need to have strategies both ways.

Jackozy, if this closes below 24.5 would you se next entry point at 21? That's what it seems to me but not sure if there is a more probable point above this at 23. Sorry at work and can't post chart but will post later ( amateur as it is)

Bunkerjo

Hi Bunkerjo,

I've put the supports on the following chart. 19.5p looks likely IMHO as that's the 61.8% Fib of the last rise and horizontal support with the MA 200 just above.



dl.dropbox.com/u/20815047/SXXdaily15_02_13.gif

Thanks Jackozy. Are you thinking 18.5p because if the different supports (200ma, uptrend support and fib) as conceivably it could bounce off 50 percent fib at 21p?

my "longer term trend view" also thinks around 18p from trendline and big picture fib 50

I agree with T/s. I can't see 21p holding. In fact, it's not all that often that a 50% retrace holds.

There's also the possibility of a wider market sell-off to consider.

I'll have a look at some cloud and P&F charts over the weekend too.