Thursday, June 11, 2009

A Quick Update on EWT

Updated 5 day chart:

Things to notice is that after the gap down on Tuesday, we filled that gap on Wednesday and proceeded to wander downwards for the majority of the day, save for the end of day crap we've been getting lately. I believe the technical term for that is, gap and crap. What I'm looking for on Thursday and Friday's trading session is either another price rejection off that gap down level of 10.37, or if we can get above that, looking for supply at the 50% retrace from the lows of today to the close on Friday (10.43-10.45), and finally the last line would likely be the highlighted boxed area on the right of the chart, where a few trendlines meet.

I will likely enter into an initial short position on EWT on Friday if we look like we'll be closing below that 10.65 area, barring any strength in the stock (if) as it moves towards that target area.

See my previous post for more information on this trade.

Edit: Updated chart after Thursdays market. We got a bounce off the high on Monday at 10.52 to the exact penny, and sold off from there. This is looking good for the short setup, and so I will enter a short position in EWT tomorrow with the 10.70-10.75 being my stop level price. Are you ready to see some lower approval ratings for Ma? Because this chart is saying so.

Edit #2: FPP Asset Management claims recent rise in Taiwan stocks is done, and is "no longer compelling" to buy. The director of FPP Asset Management goes on to say that "“Cross-straits [sic] is mainly hot air and it is getting the locals excited, which is always a worry.”" As always, take so-called "expert" recommendations with a grain of salt, but in this case, this one is seeing what I'm seeing in the charts.

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