[T & A]
Not what you think - technical analysis. Been doing a lot more charting stuff lately as I've just signed up for streaming L2 market depth on iii.co.uk. It's brilliant to sit and watch the movement of stocks, as you can make better calls when you're live. Anyway, I read a charting book so have started some very amateur technical analysis.
My brother is all about TA and won't even sit down to read a report. But Warren Buffet and Peter Lynch don'tlook at charts, they are fundamentalists which is what I have been up to this point. I do like TA but I just think it has to back it up with either strong balance sheets, good products, contract wins or a booming sector. My stock picks were ratio searches, followed by fundamental research and then looking at the chart. At the moment it's based on RNS>chart>balance sheet, but only because I've got level 2.
Anyway, like I keep saying I really really (..like for real really) hate not having cash at disposal when you're sitting watching the market. It's all tied up still in stocks I've bought a few weeks ago that just mosey along, which is fine really so long as they move north. Anyway, I realised Tullow might not have been such a good buy at the moment and sold out for a £20 loss and had a look around the markets.
I've started to check market losers instead of gainers now, because more often than not, in the next day or two they're on the market gainers list. One company was down 25% today despite a 62.5% profit growth on the last year, the market depth was good: 3:1 buys vs sells and constantly ticking up so I figured I'd buy that just to see what happens really. Strong fundamentals and they've arranged for some funding, just hope the debt levels reduce and they get some revenue in the next few months. Oh it's Imperial Energy Corp - IEC.
Anyway, I did some (if you know anything about TA you will say "..some bad") TA for Savills (SVS), Vectura (VEC) and Bowleven (BLVN). On paper I love Savills and Bowleven, my brother pointed me towards Vectura after some heatmap analysis.
BLVN.. wow I just realised how crap images look on blogger..
Well because it's all distorted I guess you can barely see the 3 little coloured squares giving my buy/sell indicators. Anyway it's in the top and black bottom line in an upward trend, but there is also a second support resistance line (the grey one). The red line indicates recent resistance. I did it last night with the blue square meaning buy if it goes above, points along the top black line are sell indicators and if it bounces off the purple square and passes the red line - definate buy. Anyway today it's above the recent resistance (buy signal) and I'm going to see if it hits the upward trend line.
SVS
This is a little simpler, seems to have established an uptrend in a definite little channel there, but has encountered historial resistance (red line). It bounces back to the bottom trend line and then makes another move. The blue square is a buy, as it represents the lowest buying price in the trend, purple square is indicative of a resistance break and possible new support line towards the top trend line. The yellow square indicates a possible break, if not, then open a CFD until it retraces to the support line - or if it fails that, the lower trend line.
VEC
Really simple here, stock is really low compared to past prices, looks to be on sale. It's broken out of its downtrend and has made a short burst upwards along 2 trend lines (the thin one also lines up with the big red candlestick). The squares are self explanatory this time because you can read it. Today VEC hit the blue square indicator, indicating it is looking to break the resistance and find some new support at that price.
OEX
This is just for a laugh. My brother keeps harping on about Oilex being a crap company - but going by independent research, contracts and prospects, this stock has great potential over the long term (18 months+), especially if you can get in at the support at 56. I did this graph in about 2 seconds, and I'm not even sure you can call it TA except for the resistance at 6 and formation of an upward trend in the past 2 weeks. The one problem with OEX is the total and blatant resistance at 60. This was 2 days ago, and the stock is still below resistance, but interestingly still on the last upward trendline in the wedge - indicating to me that there is interest in the stock, just nobody wants to make a move. I'm waiting firstly for continuation of the lower upward trend, followed on a break of 60 which would indicate a buy.
Also, as I write this IEC continues to recover on L2.
My brother is all about TA and won't even sit down to read a report. But Warren Buffet and Peter Lynch don'tlook at charts, they are fundamentalists which is what I have been up to this point. I do like TA but I just think it has to back it up with either strong balance sheets, good products, contract wins or a booming sector. My stock picks were ratio searches, followed by fundamental research and then looking at the chart. At the moment it's based on RNS>chart>balance sheet, but only because I've got level 2.
Anyway, like I keep saying I really really (..like for real really) hate not having cash at disposal when you're sitting watching the market. It's all tied up still in stocks I've bought a few weeks ago that just mosey along, which is fine really so long as they move north. Anyway, I realised Tullow might not have been such a good buy at the moment and sold out for a £20 loss and had a look around the markets.
I've started to check market losers instead of gainers now, because more often than not, in the next day or two they're on the market gainers list. One company was down 25% today despite a 62.5% profit growth on the last year, the market depth was good: 3:1 buys vs sells and constantly ticking up so I figured I'd buy that just to see what happens really. Strong fundamentals and they've arranged for some funding, just hope the debt levels reduce and they get some revenue in the next few months. Oh it's Imperial Energy Corp - IEC.
Anyway, I did some (if you know anything about TA you will say "..some bad") TA for Savills (SVS), Vectura (VEC) and Bowleven (BLVN). On paper I love Savills and Bowleven, my brother pointed me towards Vectura after some heatmap analysis.
BLVN.. wow I just realised how crap images look on blogger..
Well because it's all distorted I guess you can barely see the 3 little coloured squares giving my buy/sell indicators. Anyway it's in the top and black bottom line in an upward trend, but there is also a second support resistance line (the grey one). The red line indicates recent resistance. I did it last night with the blue square meaning buy if it goes above, points along the top black line are sell indicators and if it bounces off the purple square and passes the red line - definate buy. Anyway today it's above the recent resistance (buy signal) and I'm going to see if it hits the upward trend line.
SVS
This is a little simpler, seems to have established an uptrend in a definite little channel there, but has encountered historial resistance (red line). It bounces back to the bottom trend line and then makes another move. The blue square is a buy, as it represents the lowest buying price in the trend, purple square is indicative of a resistance break and possible new support line towards the top trend line. The yellow square indicates a possible break, if not, then open a CFD until it retraces to the support line - or if it fails that, the lower trend line.
VEC
Really simple here, stock is really low compared to past prices, looks to be on sale. It's broken out of its downtrend and has made a short burst upwards along 2 trend lines (the thin one also lines up with the big red candlestick). The squares are self explanatory this time because you can read it. Today VEC hit the blue square indicator, indicating it is looking to break the resistance and find some new support at that price.
OEX
This is just for a laugh. My brother keeps harping on about Oilex being a crap company - but going by independent research, contracts and prospects, this stock has great potential over the long term (18 months+), especially if you can get in at the support at 56. I did this graph in about 2 seconds, and I'm not even sure you can call it TA except for the resistance at 6 and formation of an upward trend in the past 2 weeks. The one problem with OEX is the total and blatant resistance at 60. This was 2 days ago, and the stock is still below resistance, but interestingly still on the last upward trendline in the wedge - indicating to me that there is interest in the stock, just nobody wants to make a move. I'm waiting firstly for continuation of the lower upward trend, followed on a break of 60 which would indicate a buy.
Also, as I write this IEC continues to recover on L2.
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