1st chart of the year, page-12

Hi Barry
you are right that for a sustained rally we will need ongoing demand. but when a market is oversold you can also take advantage of a return to normal price channels. BHP was a prime example of being oversold at $20. demand has not increased. bhp has just bounced back to a more normal level. cba is doing the same now.
I am talking about whether to sell today or hold on till next week. It is a trading choice for today only.
In Dec you could have bought BHP at $28, LGL at $2.60, WPL at $31, NCM at $31, cba at $27 etc
You can take profits today(and they are substantial) but
we MAY see a price channel breakout next week so it may be worth the risk. do I sell wpl at $37 today or hold till next week? the short term trend for oil is up. if it falls then I will reassess and most probably sell but in the meantime trailing profit stops work beautifully.
If you bought at the lower levels then there is enough fat in the trade now to wait out till next week perhaps with tight stops.
I see today as either a hold or sell and take profits.
For those who bought at the Nov low prices then well done.
I am interested in contrarian views for next week and I appreciate your comments.