daytrade diaries... wednesday, page-6

Morning all,

Well I didnt expect a bounce in the US overnight like we saw, well I will rephrase that... I thought that we might have a few more rest days before the rally continues. Why do I say that, well im actually fairly bullish on the markets at the moment. I think the rally has legs, and the news on both the overall market continues to be positive, in addition many good profit results flooding the market. Another thing of interest is the number of take overs occuring, such as Sun making a cash offer for Oracle @ $9.50 per share.

Another indicator is the VIX. I havent posted a chart, though its looking relatively bearing right now and in a solid toward trend. As long as this remains, the markets should continue to upward momentum. What would I know, im just a day trader.. ha ha..

Anyway, stocks I will be watching include PRR, IVA, CFU, MEL, ABY, MCW, BLY, IRL, KAR and OKN

I think there will be a bounce on several of the sold down stocks from yesterday, though not sure how the bounces will hold.

Here are a few charts I will leave you will. For anyone who thinks that PRR hasnt got more legs, here is the 3YR MONTHLY Chart showing resistance levels. Remember that there have been a huge number of developments over the past few months that are starting to transform the company. Not making any kind of target calls, buts its up there!



Here is another chart of Oakton Limited (OAK). It hit a recent high of $1.68, before retracing on the back of profit taking to a low of $1.12 yesterday. It closed above resistance @ $1.165 and looks good for a possible bounce this morning. Volume was also light yesterday which suggests it was sold down for no other reason then small traders exiting. I havent looked at the FIB retrace from $1.68 to $1.12, but it might be around the 61.8% level (anyone able to confirm?)



Anyway, I will be looking at the candle structure at open. We might see any number of the following (Abandoned Baby, Morning Doji Star or Morning Star)

Good luck today guys and trade carefully!

Cheers
Kevi