canonman.....How you read charts depends on your trading...

canonman.....How you read charts depends on your trading strategy. In current times I wouldn't put too much faith in LT charting as we now have so many variables, more global now than regional that are slaughtering companies in a breath.

I reckon some very basic daily indicators are hammers, inverted hammers, shooting stars and various doji's.

Cup and handle is a more LT strategy and as you can see from many posts that there are areas of dispute. While your learning use simple more tried and proven ST indicators and DO YOUR OWN RESEARCH particularly on the companies fundamentals. If they're very good then there is less risk of the SP falling very rapidly. With the likes of ESI you are also in the high risk side of the market. Also look for gaps that most likely at some stage will be closed "UP" or "DOWN".

ESI in recent times doesn't have any major gaps to close and that's something that I always like. Also inverted hammers are one of my favourite buy signals, qualified by the following days trade. I reckon without the global worries we would've held above 3 cents easily and may claw that back today if 3.0 doesn't become resistance. The overbuying up to early April stabilised and Bollingers have now closed sufficiently, we are also showing an inverted hammer although I prefer a tighter one with a smaller head, but today should qualify a new upward direction or qualify a ST downward trend. To me I reckon the reaction has been more from global sentiment than charting, so I reckon we're worth more than the current SP and a LT BUY is in order.

Today should be interesting most markets were up overnight.

GL holders