it's the weekend 8-10apr , page-101

i posted earlier about a potential short trade opportunity in WBC....it is always good to analyse the sector that a stock belongs to before committing to a trade, it can act as a filter if you will

if you want to trade a certain stock short/long, you should confirm if the sector looks like a short/long trade, and to a lesser extent if the index looks like a short/long trade.....the more confirmation that is found, the more probable the success of your trade....this should form part of your weekly trade planning

below is the financials sector, XFJ


the purple channel is established and we are mid-stream, but note the recent red channel....price has moved right up to the top of the channel, and could potentially turn at this resistance level.....this setup provides a probable short location and supports my earlier aim to be short in WBC this week

additionally, take note of the stochastic pattern....circled in red, each time the stochastics drop below the upper trigger line they have fallen almost straight away to below the lower trigger line, and a drop in price conincides with the stochastic fall......circled in yellow is where we are currently....should the stochastics drop below the upper trigger line the probability exists for a decent fall

now we have the XJO


here you see the blue 50% fib line that the index has failed to break several times now.....as well as the red ranging that has been present for some time....this areas of resistance provide a probable short location and this chart supports my short bias for the week