The Trading Deck at MarketWatch (A Wall Street Journal Publication) has just published my Elliott Wave article on using Elliott Waves to invest in Mid Caps
Elliott Wave Analysis of EasyJet as posted here on 6 May 2012 suggested a three step move as follows: First a recovery from the then current 514 levels to 533, followed by a dip to around 470 after which a rally to 595. Here is the link for that post: Eliott-wave-analysis-of-easyjet-plc
Guess what happened! The stock went to 536, came down to 474 and rallied to 599. It is currently trading at 585. So we pretty much anticpated a 25% move with all its twists and turns. I am not aware of any approach to technical analysis other than Elliott Wave Analysis that can do this so effectively!
In my original post, I suggested that once we complete this move, there is a chance for a move back down to 470 levels. As you are aware, with new information we are always in a position to fine tune our levels. I now believe that if we get a move to 615, it might be a good idea to lighten up and get ready for a sell on this stock. Infact, even from 595 one should start selling off one’s holdings in stages. I mention 615 because the 620 level seems to be where the fifth wave could finish. I arrive at that level using the same techniques explanined in my book “Five Waves to Financial Freedom“. It has been my experience that it never pays to wait for the absolute top to exit one’s existing positions. It is fine to be patient to take a counter trend trade as close to the computed top as possible. That way, we can minimise any possible losses should the market continue to take the stock higher. But having identified 595 as the initial objective, we should have no qualms in getting out of any longs that we may have from near 470.
There is so much happening at Barclays Bank that I thought it deserves a look at the chart and see if we can get any clues. SO here you are..As always, please remember that WaveTimes in its current form is only sharing with you my knowledge of Elliott Wave Analysis. If you take the views as trading advice, you also need to know how to manage the positions and that does not figure here! If you wish to learn how to use Elliott Waves then you have my book “Five Waves to Financial Freedom”..
There are strong Elliott Wave reasons to think Glencore stock (GLEN:LSE) is all set to continue its dive in the coming weeks. The decision by Qatar Holdinigs to seek improved merger terms sent shock waves up the spines of those who were hoping for some stability in Glencore’s stock price. Let us take a quick look at the chart of Glencore PLC and see what is in store.
ELliott Wave Theory says that any one impulse wave in a five wave sequence is likley to extend. Clearly, Waves 1 and 3 were both of normal proportions for Glencore. Thus, it looks like we should expect the selling to intensify, especially on any close below the 265p level. Why is the 265p level important? At that point, the stock would have reached its equality measure of the first major sell off from 559 to 341.
HOw can one trade this? I think any recovery to around 298 should be used to get out of stale longs. It is doubtful if we will close above 303 in the near term. As a first step, take partial profits below 277 and some more at 266. Once we get a clear break below 265, we should think of finding fresh levels to add to shorts. But for now, although we should be prepared for the worst (which is a 25% loss), let us be content with a 9-10% profit.
Let us see what Elliott Wave Analysis of EasyJet Plc suggests about the possible future direction for this stock. This low-cost passenger airline that conducts operations throughout the United Kingdon and mainland Europe has seen its stock recover nicely from around 300 pounds seen in July 2011. It is currently trading at 514.50.
As always, I have posted additional comments directly on the chart to make life easy for you! Enjoy.