weekend charting anzac long weekend, page-118

Hi Jack and Jill

My take on Mel.

Firstly a longer term Weekly chart showing that we are at a convergence of a long term uptrend line and shorter term downtrend line and have been traveling in a broad trading channel for quite some time. Currently we sit right on the lower edge of that channel. We have the MACD looking to be starting to tick up, stochastic oversold and more importantly the weekly bar finished in the upper half of its bar after probing the .50c level and did so on increased volume telling us that buyers moved in.



Next we look at the longer term Daily chart and we can see again our longer term lower support level and the last 4 days hugging it. We can see the MACD,RSI and Stochastic all starting to tick up. Price is being squeezed into the apex of the 2 lines too as you can see so a decision up or down is imminent.



Lastly, I have shown the short term view and labeled some of the moves to show what is happening here in regards to when the selling or buying is coming in.

As you can see clearly on the chart the major moves are always accompanied by high volume, this is the smart money moving in or out. We can see this clearly with bars 1,2,3 and 6. High volume wide spread days finishing off the top part of the bar = weakness and this is where overzealous buyers have been sold to. What we are interested in though is where the buyers are coming in and conversely these can be identified by the complete opposite. Ie High volume, wide spread bars finishing off the bottom of the bar. These are typified by bars 4,7,8,9,10. Bar 5 showed strength of buying because price finished high in the bar and yet failed to make new ground because price had entered an area of weakness previously set by bars 2 and 3. Not enough time had passed for that weakness to be overcome. Now if we look at the last 5 days we can see bars 7,8 and 9 were all high volume days finishing off their bottoms showing buying coming in. Bar 10 was a low volume narrow spread day showing that selling had dried up. Finally bar 11 on friday moved upwards on slightly increased volume showing steady buying pressure. This is what we want to now see. Steady rises on slowly increasing volume. Forget the high volume spikes they always get sold off.

Cheers!


funkymonk
I hold BMN COE NDO ESG MEO MEL