RE: As its quiet- a chartist question16 Mar 2021 14:49
Tim,
This is what I actually said: "If it bounds upwards from this very minor retrace, then that confirms sentiment is very strong indeed, but as I say, in the absence of any news, there is no particular reason to buy tomorrow (imo). I still think 235p ish would be a natural and obvious place for the SP to take a breather down to and then kick on upwards from there."
So I gave 2 scenarios. A further fall was (I thought) most likely.
As it went up from the minor retrace it shows how strong sentiment is running on this stock. (By the way if you are actually interested in charting, you have to divorce yourself from the knowledge you have of the company itself and that's important because the SP and the company are distant relatives who occasionally meet up every so often, promise to stay in touch and then don't.)
The weekly, 15 minute interval chart is keeping the stock in neutral territory allowing for it to rise and fall without giving much of an indication as to what is immediately next.
The closing day chart is back into over bought territory suggesting a fall will take place pretty much identically to the 11th march postings I made. And as we know it fell about 6p before jumping another 20p to where we are, give or take, now.
A new support is forming around 270p so presently if a retrace were to happen now then that is its likely place to pause.
Always remember chartists can't predict the future, they just try to see what's most likely. If the "less likely" option occurs, then they recalibrate from there.
(What I find refreshing about that, is that there is no (or should not be), any emotional attachment to a previous "call". its never about being right or wrong)