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It’s been a wonderful time in the markets. We’ve seen a very clear trend and if you were on board using Elliott Wave Analysis you would have no doubt seen some excellent trades.
As attendees of the Elliott Wave Webinar would be aware, the best time to trade is in the presence of a very clear trend. It is much easier to find successful trades when the overall market is trending in the same direction as your potential trades. Again, basic technical analysis is essential.
As Tom Scollon mentioned in last week’s Trading Tutors newsletter, Australian markets have been largely range-bound for the last few years and more recently, over the last few months. We have seen very clear levels of support and resistance opening up a number of opportunities to place educated, constructive analysis, particularly at the upper end of the range, around the 4600 level.
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During the last Elliott Wave Webinar, we found ourselves at the upper resistance level, just as markets were due for a turn lower. A series of lower highs and lower lows opened up a series of exceptional trades.
Let’s take a look at take few examples:
James Hardie Industries:
Brought to our attention via the pre-computed scans, James Hardie was one of 6 profitable example trades for the session. Although we weren’t able to enter this trade as soon as early as we may have liked, further strengthening our analysis was the strong Elliott Wave sell signal, combined with a bearish MACD entry signal and a confirmed bearish trend. Using the ProfitSource pre-computed scans, James Hardie Industries was just one of several Australian companies brought to our attention.
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The second example brought to our attention was from one of our very own attendees of the Elliott Wave Webinar. As usual, we asked students to go away after the first session and find potential trades to review during session two. Congratulations to those who did, as we were rewarded with a few excellent trades indeed.
Commonwealth Bank of Australia was one example brought to my attention by you, the students. Looking at the trade in further depth, the technicals proved to be very strong indeed.
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Of course, not all trades we looked at in last week’s session were profitable. We can’t expect 100% success but we can expect a certain level of consistency provided we commit to our knowledge and commit to our tools.
If you’re using the HUBB Investor software or simply wish to learn a little more about basic technical analysis and Elliott Wave enrol in the FREE Elliott Wave Webinar today.
Happy Investing
Lachlan McPherson
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