weekend charting, page-18

TDA, I'll post a chart for BPT because you're a UNI follower!

Like UNI, I really like BPT but it's hard to love because it procrastinates a lot. I'm not holding either at the moment, using the cash elsewhere.

Now, I am very new to trading and even greener at charting so this is simply to discuss, although I'd love to hear others' opinions on my theories - especially if they are incorrect as I need to learn!

I'm a big fan of the Parabolic SAR to tell you when to get into the stock - when they appear below the candles (the little green squares) it is a signal of an uptrend. HOWEVER, it's not great when prices are ranging (or flat or consolidating or whatever you want to call it).

The signs are encouraging though.

The slanted dotted blue lines indicate support lines, which BPT has been respecting fairly well since early May. The thin solid descending blue line shows the longer term downtrend of the stock, which was broken (a good sign) the last two days of trading.

The solid thin red line is also a significant resistance line which has also been broken in yesterday's trading. You can see it also touched the upper resistance channel line (the slanted doted red line).

The PSAR is only one indicator and needs to be confirmed by at least one other IMHO. With BPT, the MACD, RSI, ROC and ADI are all pretty damn good, but the Slow Stoch is saying it's overbought.

I also am a big believer in gaps needing to be filled but not always and it did leave a little gap at Friday's open.

My "punt" would be it will drop a little to fill the gap and then close up that day or Wednesday. If it doesn't fill the gap and continues higher it's still great, but I can never help looking back. If it does fill the gap, look for how it closes the day. Up is good, especially if it happened to close about 87.5 ie above the two resistance lines. If down, Wednesday might be crunch day for the call on the next phase.

The price of oil won't be going down anytime soon either I reckon, but that's another story.



PS: Don't ask me how the lines were drawn, the program does them for me!