CHANNELS BVB – MID ECONOMIC UPDATE (WITH NEW GLOSSARY)

Mukul Pal ·

altsno230609
SUMMARY: ELECTROPUTERE WEEKLY (EPT) Prices turn down from previous resistance and continue to point lower. SOCEP WEEKLY (SOCP) Though minor trend remains negative, prices have reached multiyear primary supports near 0.1 levels which should hold. ARMATURA DAILY (ARM) The impulsive structure continues to point up. UAMT WEEKLY (UAMT) Prices are testing the channel support. A break here would be extremely positive. Key level lies at 0.5. AEROSTAR DAILY (ARSB) Trend remains stagnant to negative and a retesting of the support suggests negativity. ELECTROCONTACT WEEKLY (ETC) Prices broke upwards the channels support. Next key level lies at 0.04. ALTUR WEEKLY (ALT) Prices have made an Engulfing Bearish (EB)* and Dark Cloud Cover(DCC)* at previous highs. The trend remains down. SANTIERUL NAVAL WEEKLY (SNO) The minor trend remains positive. There is no negative confirmation. VAE APCAROM WEEKLY (APC) Moving average crossover is negative. COMELF WEEKLY (CMF) Prices are still in the downtrended channel and make a reverse head and shoulder formation. We need a clear break at the neckline to look higher. MEFIN DAILY (MEF) ANTICIPATED AND HAPPENED Relative Strength Index (RSI) non confirms prices and suggest negativity. As anticipated prices broke down the channel support. TURBOMECANICA DAILY (TBM) Prices take key support near 0.07 levels with a HAMMER formation. These are the last supports standing. A break here would be negative. ARTROM DAILY (ART) Prices have broken the intermediate channel and are retesting the intermediate lows. MECANICA WEEKLY (MECF) ANTICIPATED AND HAPPENED Moving average crossover suggests continued positivity. As anticipated prices continue to remain up, but sideways. COMPA WEEKLY (CMP) Prices make a Dark Cloud negative Formation. Trend remains negative. CONDMAG WEEKLY (COMI) Prices are out the downtrended multiweek channel, testing key level at 0.3. We need a clear break here to look higher.
GLOSSARY
 

•Resistance The price at which a stock or market can trade, but not exceed, for a certain period of time. Often referred to as “resistance level”. The stock or market stops rising because sellers start to outnumber buyers.

 

•Support The price level which, historically, a stock has had difficulty falling below. It is thought of as the level at which a lot of buyers tend to enter the stock. Often referred to as the “support level”. If the price of a stock falls towards a support level it is a test for the stock: the support will either be reconfirmed or wiped out. It will be reconfirmed if a lot of buyers move into the stock, causing it to rise and move away from the support level. It will be wiped out if buyers will not enter the stock and the stock falls below the support.
• Head and Shoulders Pattern A technical analysis term used to describe a chart formation in which a stock’s price: rises to a peak and subsequently declines. Then, the price rises above the former peak and again declines. And finally, rises again, but not to the second peak, and declines once more. The first and third peaks are shoulders, and the second peak forms the head. The “head-and-shoulders” pattern is believed to be one of the most reliable trend-reversal patterns.

 

•Moving Average An indicator frequently used in technical analysis showing the average value of a security’s price over a set period. Moving averages are generally used to measure momentum and define areas of possible support and resistance. Moving averages are used to emphasize the direction of a trend and to smooth out price and volume fluctuations, or “noise”, that can confuse interpretation. Typically, upward momentum is confirmed when a short-term average (e.g.15-day) crosses above a longer-term average (e.g. 50-day). Downward momentum is confirmed when a short-term average crosses below a long-term average.

 

•Double Bottom Formation A charting pattern used in technical analysis. It describes the drop of a stock (or index), a rebound, another drop to the same (or similar) level as the original drop, and finally another rebound. The double bottom looks like the letter “W”. The twice touched low is considered a support level. Most technical analysts believe that the advance off of the first bottom should be 10-20%. The second bottom should form within 3-4% of the previous low, and volume on the ensuing advance should increase.

 

• Bearish Engulfing Formation A chart pattern that consists of a small white candlestick with short shadows or tails followed by a large black candlestick that eclipses or “engulfs” the small white one. As implied by its name, a bearish engulfing pattern may provide an indication of a future bearish trend. This type of pattern usually accompanies an uptrend in a security, possibly signaling a peak or slowdown in its advancement. However, whenever a trader analyzes any candlestick pattern, it’s important for him or her, before making any decisions, to consider the prices of the days that precede and follow the formation of the pattern.
•Dark Cloud Cover In candlestick charting, a pattern where a black candlestick follows a long white candlestick. It can be an indication of a future bearish trend. Essentially, the large black candle is forming a “dark cloud” over the preceding bullish trend. The dark cloud must have a closing price that is: within the price range of the previous day, but below the mid-point between open and closing prices of the previous day.
•Relative Strength Index (RSI) A technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset. It is calculated using the following formula: RSI = 100 – 100 / 1 + RS (RS = Average of x days’ up closes / Average of x days’ down closes) The RSI ranges from 0 to 100. An asset is deemed to be overbought once the RSI approaches the 70 level, meaning that it may be getting overvalued and is a good candidate for a pullback. Likewise, if the RSI approaches 30, it is an indication that the asset may be getting oversold and therefore likely to become undervalued. A trader using RSI should be aware that large surges and drops in the price of an asset will affect the RSI by creating false buy or sell signals. The RSI is best used as a valuable complement to other stock-picking tools.

 

•Hammer A price pattern in candlestick charting that occurs when a security trades significantly lower than its opening, but rallies later in the day to close either above or close to its opening price. This pattern forms a hammer-shaped candlestick. A hammer occurs after a security has been declining, possibly suggesting the market is attempting to determine a bottom. The signal does not mean bullish investors have taken full control of a security, it simply indicates that the bulls are strengthening.

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