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Swing Trading GCI week_05

This is the fourth video of the life swing trading example using the stock GCI. Idea is that you follow the trade evolution systematically learning to apply technical analysis techniques.

For trading GCI, we are using a chart template of which the last version is presented HERE. It is possible to be informed immediately when a trade is opened or closed. Click the RSS feed button at the top right of this page and follow the instructions. Otherwise you can also look at this page to find out about the latest actions. Every weekend, there will be a video update like this one commenting the past week using a simulated account and some preview.

We will use a daily, weekly and eventually an hourly chart. On these charts we will use a number of indications as shown in the template and as explained in training video 034.

This is not an invitation to trade this stock, information given is to be used for training purposes only. Stocata.org will not accept liability for any loss or damage which may arise directly or indirectly from use of or reliance on this information.

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This is the fourth video of the life swing trading example using the stock GCI. Idea is that you follow the trade evolution systematically learning to apply technical analysis techniques. Receiving live trade signals is possible from an RSS link at stocata.org. Please note, this is not an invitation to trade this stock, information given is to be used for training purposes only. Stocata.org will not accept liability for any loss or damage which may arise directly or indirectly from use of or reliance on this information. Pay a visit to my website at stocata dot org and buy my book “Capturing Profit with Technical Analysis”.

There were no buy signals on the daily chart as we will see later on. However there was an opportunity on the hourly chart. April 5 at 10:30 EST, price moves above the last red downtrend line, moving above the 50, 100 and 200 hours simple average after a positive turn from a low point with a bullish engulfing pattern in the candlestick chart. At the same time there is a positive divergence visible in all indicators as you will see in the following chart. This is a good opportunity to buy GCI for an up move above the resistance of the previous top. I am expecting a new higher high value in price to complete waves 5 and (5) in the daily chart. So, we are buying here at $16.87. Note that I keep a selling stop order at $16.40, the low of the bullish engulfing pattern. Drawing the last possible brown pitchfork, I get an idea about the expected up price angle and I assume that price will move up within the pitchfork channel.

As mentioned in the previous chart, here you can see ARSI in the top window and all other indicators making a positive divergence with price. We can expect a further up move. 

April 6 at 10:10 EST, price makes a top reaching the first Fibonacci target and reaching the median line of the pitchfork. This could be a good time to take profit. Since we are just reaching the previous top in the daily chart and since I am expecting a higher top to finish wave 5, I decided to hold on to the position a little bit longer. Of course it would not be wrong to take profit here if you are day trading on an hourly basis.

Especially, because at this point it is clear, looking at the indicators, that some price reaction can be expected now.

The down correction found support around the center 20-periods moving average of the Bollinger bands and moved higher again starting at the opening the next day. That day on April 7 at 13:50 EST, it was clear in the 5-minute chart, which we will have a look at later on, that a reaction could be expected. Since there was a good profit in just over 2 days,  I decided to take the profit. I closed the position April, 7 at $17.7. I made a profit of  17.7-16.87 = $0.83 or 4.9%.

 

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The hourly indicator chart still had up potential that moment in time. But it would probably mean waiting for the next day and considering the profit already, I did not want to wait, taking the risk of losing that profit.

The selling moment on April 7 at 13:50 EST, now looking at the 5-minute chart, it was very clear that a correction was starting with all indicators topping and already starting to turn down to the averages. Enough reason to take profit here.

Looking at the 5-minute chart at the end of the day, it was a good decision.

April 8, GCI opened in the first hour with a big move down and up, confirming once more that it was a good decision to close the trade before. At the low that moment in time you could have opened a new long trade with the low price close to the low side of the pitchfork. But it was difficult to see that entry point on the hourly chart. On the other hand,  it was a clear buying point on the 5-minute chart.

In the daily chart there is still no turning point. Price continues moving up. However, the extension impulse wave in wave (5) may be close to completion. Price is reaching the third Fibonacci projection started from the extension wave 1. A medium term down turning point may be close.

The topping indicators are confirming that a turning point must be close-by. Let's wait patiently, it always takes a little bit longer than you think.

Because the longer term Fibonacci projection on the weekly chart, still has some small up potential.

With the update on April 7, I closed the previous long trade started April 5. I added this trade to the hourly trading results. There is a total profit here now of 12.7%.

This is the end of last week's overview swing trading the stock GCI. Idea is that you follow the trade evolution and that you systematically learn applying all technical analysis techniques. You can receive trade signals during the week via an RSS link at stocata.org. Tell your friends about these videos and while visiting my website order my book “Capturing Profit with Technical Analysis”. See you in the next video for more swing trading GCI.

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