Chart update, page-10712

In my last A2M chart update on 18/05 I suggested that we should watch for a horizontal channel to form around the Extremely High Volume Close of 16/05, and to look for down bars (bars with a lower Close) on reducing volume to confirm that accumulation could be happening. I have drawn the top and bottom levels of this channel and highlighted the reduction in volume over the last four days.

The 200EMA (green dotted line) and 200MA (orange dotted line) are also shown on the chart, along with the bottom of the 21/02 gap. As other Posters point out, these 200EMA and gap levels now coincide at 822c. The 200MA level has provided support in the past. Also note that the two stochastics on my chart have been declining and are now both oversold, although this doesn't mean that they will magically bounce back up again as they can remain oversold for an extended period in a strong down trend.

As a Trader I would be waiting for a confirmed break of the horizontal channel levels (top 1100c or bottom 972c) with confirmation from the stochastics, before placing a trade. The next level of support (or the short target) would be the 822c level. This drop would close the gap which I would think would make all those who worship the magical "Gap God" happy! Personally I favour the further accumulation with an eventual break above 1100c scenario. Whichever way the SP moves really doesn't worry me as I have a trade plan that can take advantage of either.



So, not that much has change in the past four days. Just confirmation of what was suggested in my last chart post, so far anyway! Lets hope the accumulation scenario wins!!!!