A huge thanks for all your charting, I have learnt so much. Now its my turn to add to your column as a newbie chartist. I just posted this on the Wow post and thought I would share it for some valuable feedback. ---------------------------------------
For what it's worth, here's my take on Wow, see attached chart, which I apologise for, as it is a little busy. However, it will all become clear I hope as follows;
1)Major black fork - retrace around 7th Jan failed to reach the median line, heading towards point 'A' A/R line. Only happens in approx. 20% cases. Retraces in these events are at least, sometimes more, than prior move. Current retrace is virtually, exactly the same if it ceases now.
2)Current downtrend has crossed & broken thru the 50%median line of smaller downward fork and hit 75%. Only 20% of occasions on average will the SP move beyond the median line.
3)A fair chance that we are very close to a retrace. If that is the case and we see a pivot low at this point, the upward red fork is a possible next projected trajectory. Note a similar rise as per previous (green arrow), see's it heading for point 'B' median line, on or around the 24th Feb. Thats about $28.34, up from $26.38 today. About $2. If it passes through this point, the next is mediam line of greater fork, maybe around $29, but a bit later than 24th feb.
4)If it doesnt hold tomorrow, next resistence for me is $26.18, then $26.06, then $25.50. Also, I would need to recast current chart to update position.
I am looking for two higher lows, with consecutive higher highs before I consider a trade. Happy to err on the side of caution, miss a little along the way for a confirmed upward trend and sentiment shift. Agree that Wow is a good stock, but cyclical like all others. The only caveat is that we may see no real change until market update on 25/2.
I recently used a similiar chart to project the ANZ hitting $25 this week, which it did. That is posted on the ANZ thread if interested. Any contrary views appreciated and good luck. Cheers
