The aim of my blog is to post past examples of recent short-term trends (usually 4-12 weeks timeframe) where my entries and exits have been aided by the use of a variety of technical analysis (TA) indicators and signals.
I want to keep them fairly short in length, so will highlight mainly the technical observations I noticed. I hope I've interpreted things correctly in my observations! Any technical terms can be searched using your favourite search engine - there are plenty of well written definitions of terms on the internet. I use ADVFN (sorry LSE!) for charts, so my observations are based on what I see there. And of course, I check out the fundamentals of any company before I throw money at it, but that's not the purpose of this blog.
Global Petroleum (TIDM code: GBP)
A recent uptrend demonstrates how a number of technical indicators worked together before the trend started and through its growth.
1. Late November/Early December 2011 - Rise in daily money flow as the daily share price (SP) was dropping; indicating to me that money was flowing into GBP despite the SP falling, with the suggestion that support was building in the 10-11.5p region.
2. Hourly Coppock Curve upturned at the end of December 2011 at just under 12p.
3. Hourly Elliott Wave (using 9/100/200 hour combination of exponential moving averages) - textbook SP action during January 2012 to a peak at 14.75p.
4. Two daily slow stochastic oversold/overbought cycles occurred - between 19th December 2011 and 11th January 2012 (10p - 14.875p), 1st February 2012 and 22nd February2012 (12.125p - 19.5p).
5. Bullish flag continuation pattern between 11th January 2012 and 9th February 2012 before the second slow stochastic cycle began, peaking at 19.5p on 22nd February 2012.
During these 2 months, two news releases (RNSs) occurred, but the second one (on 31st January 2011) made the price drop from 14p to 12.125p over the next few days - due to 'Sell on news' investors - before the underlying trend resumed as previously described.
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