Thursday, 26 July 2012

Boxed in

HUI SKI


Not much has happened since my last report. The price has been trapped between $391 and $401 trying to carve a double bottom. A bit lower is the very long term support going back to year 2000 and a bit higher are the SKI indices lined up in a bearish formation. For now, $391 held as the support and it seems it is time to trial the resistance above. I think the next signal should be a 16-20 sell and then to get the bullishness back in play we need to reach $450 by September and challenge the 92-96 index. Practically the price is boxed in and it will need a serious energy to break up or down. The importance of this juncture is obvious, breaking down means violation of ten years old trend, breaking up means a possibility of a true bull or a double 35-39/92-96 buy.



I have added to my positions today at the close in Australia and am now 50% long. Recent low is the stop loss and I will trail it on the way up. If we reach the 92-96 index/echo I will reduce the position back to 25% and wait to see the behaviour around it.  

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