Mitta, my thoughts on today trading. Reluctance to sell down on low volume, along with the retest of the descending trendline and holding without breaking below the trendline again is somewhat bullish.
One of favorite trends to watch for is the breakout/test & retest point from the channel line (could be 3 or more retests but usually only 2).
Firstly my channeling technique is slightly different to many TA trend lines drawers as I initially draw my 1st channel line from the extreme low to the extreme high in an up trend or visa versa in a down trend, where as many TA people draw along the top of highs and bottoms of lows. Then I draw a parrallel line from the most extreme high point in a down trend and most extreme low in a up trend thus forming the channel.
Once the channel is breached, usually within a couple of trading days, you will see a 1, 2, 3 day retest of the line. For many, confirmation of the buy is actually a break above the initial breakout high. Failure indicates a continuation of the existing trend and time to re-adjust your extreme parrallel line again.
Each person has their own technique, I am offering another system for ppl to look at.
Try the different styles and let me know your thoughts.
NB: You will also note I still have a bearish signal at the bottom of my chart, so in no way am I saying the downtrend is complete. I am just seeing bullish sentiment moving back into the stock. This is yet to be confirmed.
Initial breakout followed by a retest over the next couple of days on lower volumes, accompanied with increasing buy side spread and larger than norma buys
SDL Price at posting:
37.5¢ Sentiment: Hold Disclosure: Held
