Thursday 27th January (2)

by Liam 22:00 2 comments

I've been looking at the hourly Eddie chart over the last few days and it reminded me of something I saw in a TradeGuider video. I thought i'd blog about it and have a go at a more long term analysis of the chart. Here's an hourly chart of cable - 275 bars

13th - 27th January - 1hr Eddie

As we can see from the hourly chart, Eddie has been in an uptrend for a while now. The trend i've drawn takes the low of the 13th Jan and 18th of January and the intersecting high; the 14th January. The trend channel is also divided into quarters.

On the chart i've marked five points, A, B, C, D and E. We'll look at each of these in turn. We're going to be looking at the high points of the chart as it is trending up.

A - At point A it has moved past the halfway point of the trend channel and nearly three quarters of the way to the upper part of the trend. In fact it has upthrusted to this area.

B/C - At points B and C the chart reaches the half way point of the trend and reaches no higher.

D - This is where my attention was drawn to a video I watched previously. The chart barely makes it past the first quarter of the trend channel before retracing back to the support line.

E - Point E happened over the course of today. The chart didn't make it past the first quarter of the trend in fact finding resistance at 1.3760. 

With this happening as we move up the trend we're slowly getting a mushrooming over of the chart and I think that before long we could start seeing a down move on Eddie. Of course this could all be negated overnight / tomorrow if the chart manages to break through the 1.3760 area.

Keeping this in mind it is important to note that the support line of the trend channel has been respected the whole way up the trend so it could take considerable effort to break it. Just thought it'd be interesting to have a look at over the next few days.

Cheers,

KFT