Friday, August 28, 2015

How does my technical analysis work? NEM

UPDATE 17/9/2015

According to 15 min chart the NEM in third wave which started yesterday. the resistance is somewhere near 17.5$ and stock need to rest there and continue to confirm rising trend. Yesterdays there was high volum on call optionI of October.





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read from psychology books that human minds have different kind of  intelligence and the most one I get is visual intelligence. By watching the charts for long time you can easily recognize the patterns, trends and combine indicators. Let's see the NEM chart for example and here I start from weekly to 15 min charts. note the C in chart is inaccurate and it could be in previous top.


As you see the stock begun a downward trend in mid of 2011 till now. Starting from 2014 the price entered a consolidation phase which is called also de-trending. A huge broadening pattern as shown in chart above. Please don't confuse with Elliott wave counts for correction waves. I expect the prices need one more jump at least 50% of e decline. let's see daily chart.


Here I used elliott wave count because I find it fit with it. I focused in e wave and it clearly represent the flat correction wave which form three wave abc. the c wave completed four of its five waves and the last one in ongoing now. Divergences of RSI and MACD good signals to reverse the trend but not always works. let's zoom in to last wave.


Now the 15 min chart of NEM shows that the wave c is completed and price starts new rising wave which expect to be reach at least the 50% of previous trend 19 - 20$. I expect the stock will rise tomorrow to form wave i and then decline to form wave ii which is best buy entry. The analysis need revised if the bottom at 15.4$ is broken. Generally you will find this analysis works with other gold stocks.


This how does my technical analysis work. however you have to manage you trade using stop loss and control you emotion. Remember don't put all eggs in one basket.

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