Hot Copper Charting and Chat, page-15

Hi Jako and all the other Charties out there.  I don’t post all that often on this thread but I do look forward to reading it each weekend.  My chart for PLS is shown below.  To answer your questions, in my opinion the two signals are those of a “Two Bar Reversal” SOS and the last bar is a very high volume “Upthrust” which has occurred in a well-defined downtrend, a SOW.  All very confusing.  Maybe a high volatility basing pattern.  I’ve seen this type of pattern popping up on a number of the Lithium stocks lately.

  

One additional interesting observations is how reliable the Upthrust in a Downtrend signal can be.  I’ve identified a number of the Upthrusts that have occurred recently.  I can remember watching a number of Tom Williams webinars where his assistant was asked exactly which VSA setups she used.  Her answer was that she only ever traded Upthrusts in a Down Trend.  I just checked and PLS is shortable on 30% margin with FP Markets.  I’ll have to add this setup to my daily searches I think.

With PLS the WaveTrend momentum indicator is well and truly overbought but now heading up.  If it wasn’t for the Upthrust I’d be looking to go long once the down trend line is broken, but I’ve got the feeling that more sideways action in the range of the two bar reversal is in store for PLS.