My new site is finally up and I will be posting my stocks analysis at http://mystocksinvesting.com


Marubozu

May 31, 2010.

My Stocks Investing Journey

Search This Blog

Monday, December 28, 2009

Yangzijiang - Moving Sideway?

Found an interesting chart pattern on Yangzijiang. Yangzijing took a breather to move sideway after every upside with reduction in trading volume.
The 1st consolidation (Jun to mid July) lasted for 1.5 months.
The 2nd consolidation (Aug to mid Nov) lasted for 3.5 months.
The 3rd consolidation (Dec to ??) - how long with it last?



Things to watch out:
  • $1.118 is the key support (61.8% Retracement Level for short term - red, 50D MA and the uptrend support - green line). If this support is broken, the trend will be reversed and Yangzijiang may go down to $0.906 (long term 61.8% Fibonacci Retracement Level - black) for healthy correction. Yangzijiang is still on a long term uptrend as 200D MA line is still moving up.

4 comments:

  1. Hi, I think your FR levels are vertically inverted. I'm not sure about your charting software, but you could try drawing the retracment in the opposite direction, ie. drag from march low to recent high. Cos it should be the 38.2% retracement level instead of the 61.8% level in both cases.

    By the way, are you expecting a sideways correction for the end of this 5 wave advance?

    Cheers
    Spencer
    www.synapsetrading.com

    ReplyDelete
  2. Hi Spencer,
    They are the same, 38.2% and 61.8% are the mirror image of each other. It depends on how we draw the Fibonacci.

    Thanks for spotting out the Elliot Wave on this counter. But I think this 5th wave is not completed yet and may consolidate for a while until it bounces back from the uptrend support line (green) to resume the 5th wave.

    regards
    Marubozu

    ReplyDelete
  3. Hi,
    I have added your blogspot in my new site.
    http://www.mystocksinvesting.com

    Marubozu

    ReplyDelete
  4. Your Fibonacci retracement levels are upside down.
    Agree with you that it is a mirror image, but conceptually, it is wrong.
    A 38% retracement, means it retraces 38% of the previous move up.
    You cannot draw the levels upside down and call what is obviously a 32% retracement a 62% retracement.
    It just looks absurd.

    ReplyDelete

ShareThis