Chart Watch 2007-01-14

Alliance Resources (AGS)


Alliance Resources (AGS) is an excellent example of Guppy Trend Trading. From its initial breakout from around 30 cents, Alliance has provided only two exits signals using the count back line as exit ($0.75 and $1.69). The exit signal that occurred at $1.69 was when a JORC result was delayed, now due early 2007.

AGS has provided re-entry signals at $0.80 and now it looks like a new entry signal is being provided. This week we will be looking for the short term groups of Guppy MMA (specifically the 3, 5 and 8 EMA) turning upwards indicating traders are re-entering the stock.

I like using AGS as an example of why traders shouldn’t be afraid of stocks that are continuously making new highs.

Envirozel Limited (EVZ)


Envirozel Limited (EVZ) has not provided an exit signal all the way up from its breakout at around $0.16. Long term group show s a nice constant spread, short term group demonstrating healthy retraces towards the long term group. Current count back line at $0.385, close on Friday at $0.41.

Indestrea (IDL)


Indestrea (IDL) keeps maintaining a constant spread between the short and long term groups. Healthy retraces occurred along the way, with the pull back on the 2nd of January of most interest testing the short term group, reconfirming the trend. Current count back line at $0.305, close of Friday at $0.33.