What would you do with this stock?

[Jai Ramoutar]

Take a look at this chart, and tell me what you would do. It would be very interesting to see how your thought process works without the pressures of emotional attachment to this stock.

[FTSE Beater]

Hi Jai Ramoutar

I would give it one more bar / day. The reason is the last bar bounced off a trendline connecting the 3 highs together, so a break out of that and I would want to be out of any short.
If I was long though, I would be looking for a break-out on the next bar of the trendline. I would rather be long as the increase in volume is very prominent

Your right though, it's very different analysing a chart when you not in it

[helenquenet]

Being a skittish person I'd have been out a day ago when the volume was rising after the doji day, there was also a hammerish candle. I go very much on context and feel and I think this downtrend has run it's course. Please let us know what happens

[papajohn]

Hi Jai,

It depends upon if I'm looking for an entry or exit - for some reason that affects my next move . If I were short, I would have exited because I use a 3 bar trailing stop. I wouldn't be looking to enter long, because I would like to be with the trend, here it appears to still be within the downtrend and this may only be a correction.

I too would be interested in hearing your result.

PJ

[Jai Ramoutar]

I had a bearish bias when I posted the initial chart. The volume did prove to be enough to push GAP out of the channel. After being stopped out on my short, I re-entered the short at 7.79. The strong resistance was enough to put out the flames on that powerful trend break. As time permits, I will try and post some more charts, and give feedback based on foresight. Thanks for participating!