Friday, 19 September 2014

Quindell bounces again

Yesterday saw Quindell hit it's support of 163p, and sure enough, this morning it has bounced up, although nothing like as strongly on previous occasions.

As we hit support yesterday, I closed my latest short (for 10p profit per share) and I am waiting now for it to rise within the channel back to 177-179p, to short the stock again.

Readers of my previous posts will know why I am not prepared to ride the stock long up to that new short entry target.

QPP bounce and wedge

A contrarian view would notice that the tops and bottoms seem to be getting narrower, and the price can be viewed as a wedge rather than a flat or symmetrical triangle. As the top line is falling faster than the bottom line is rising, this is (just about) a falling wedge which is a bullish sign. It is so slight, however, that I would not buy on this.

You might say that in the shorter timeframe, there is a stronger top line gradient, as shown below

QPP Descending Triangle

but this would not help bulling chartists, because in the shorter timeframe, the bottom line is flat. This is therefore a descending triangle, not a wedge, which is a bearish sign!

I have no position at the moment.

(Incidentally, I ditched all my $FTSE, $DAX and $DJIA longs this morning)

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