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Swing Trading GCI week_07

This is the sixth 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 weekly, daily, hourly and 5 minute 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 sixth 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”.

April 19 11:05 EST. On the 5 minute chart, price fell through the 50 and 100 day moving average and bounces now against the 50 moving average, turning down. Most probably to create another price leg down. As you will see in the next chart, price and indicators are showing a hidden divergence, with higher tops in the indicators and a lower top in price. These points in the direction of a continuation of the previous downtrend. We open a short position at $17.10.

Note the hidden divergence with higher tops in the indicators and a lower top in price. This will generally be followed by a continuation of the previous downtrend. All indicators are turning down from top levels. The slow stochastic is the only one converging with price and turning against the median line. This is a logical move for a continuation of the previous trend.

Less than half an hour later we can make a downward Fibonacci projection with targets at $17.65 and $17.25. Price now reached the second Fibonacci target, turns up and is breaking through the last downtrend line. The last pitchfork in line with the price move is not touching the median line. This means that if we get a new uptrend now, that price will move above the start of the upper leg of the pitchfork or above $18.25. This gives room for a nice up move. So, we close our short position here April 19, 14:15 EST at $17.40 and open a new long position at $17.42.

In the indicator chart you can see that all indicators are turning up from low levels, supporting our decision to open a new long position.

 

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At the closing of April 19, price has broken the 50 bars moving average already. We can now make a Fibonacci projection giving price targets at $18.05 and $ 18.55. We can also create an up moving pitchfork in line with the new price up move. I changed the initial stop to the level of the buying price. If things go the other way tomorrow, then there will be almost no loss.

Also at the closing of the day, you can see that there is still room in the indicators for a further up move.

April 20, 11:15 EST, price opened with a gap up and is now close to the second Fibonacci target. Price already went past $18.25, the start of the upper line of the previous pitchfork. Price is now falling below the lower line of the actual pitchfork and crossing below the last sharpest uptrend line. We can expect a reaction back to the averages. Time to take profit. We close the short position at $18.32. The results of both trades are taken up in the overview of all trades later on.

The indicators are supporting the decision to close the long position. All indicators are making lower tops with a higher top in price. This is a negative divergence pointing in the direction of price downturn.

The hourly chart was not showing interesting buy or sell levels.

In the daily chart it looks that we probably are reaching a top for intermediate wave 5 and wave (5). However the medium term uptrend line is not broken and price is still showing an uptrend. So, I am still waiting to open a trade on the daily chart.

The indicators on the daily chart are correcting down, however with a price still moving up. So, there seems to be more indecision here.

The results of this trading week are added in the table. There is now more than 30% profit in just a month's time.

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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