week of 19th july, page-42

Hi fellow chartists. Apologies in advance for the ESSAY!!!

Just been pondering next moves in this market. Been trying to formulate/finalise a plan for using TA to identify reasonably conservative entries (long and short) with a med to LT time frame. (Unlike so many on here I am not, and do not aspire to day trading). But actually believe that current markets and the foreseeable future is going to require much more nimble skills than the last 18 years where time in the market really did work.

Noticed the tumble today on WOW and being one of the more conservative shares in the market thought I would check my charts:

Chart 1. Interesting LT view of WOW showing how it has had some substantial moves up over a long time buit that they happen reasonably quickly, methodically and periodically. (Chart acknowledges that I plagiarised this from Guru Robb who posted this sentiment a while ago) also helps to prove how EASY this game was through 90s and naughties. A 10 bagger return from $3 - $30 for just holding about the most conservative company in our market!!



so if a real move is not due until price moves out of the consolidation that is is in can we make spome $$$$??

Chart 2 attempts to map price since 09 d/t; noteas are on the chart but just a good lookin p/f IMO? Note the lazy 13% return for just following the p/f rules

(if T91,10c or any of the other p/f gurus bother to read this I would love a comment on the validity of my p/fs?)



Chart3: Again just a classic p/f (green) and certainly demonstrating that another 13% (or so) was on offer when price retreated from the green res tine.




Chart4: I drew this pink d/t p/f today upon the breach of the green support tine. What a classic IMO with p/f anchored on a gap and then being confirmed by a 2nd gap, many retests (R on chart) etc with comments on chart.

Sooooo welcome any thoughts, comments, critiques from anyone who has bothered to read this monster.

CONCLUSION: there is REAL money to be made from even a boring share like wow which appears to be in the midst of a very long consolidation period. Just have to get the trends right!

My next real challenge is how to make $$$$$ out of all these pretty lines as at the moment I am basically sitting on sidelines waiting to reenter the market (long or short I dont care I just want some confirmation!)

GJ