By Elliott Wave International
[biiwii comment: well, I am a chart guy first, after all…]
Technical versus fundamental analysis? The winner is…
Editor’s note: You’ll find the text version of the story below the video.
Technical versus fundamental analysis: Which approach yields better investment results?
Continue reading TA vs. Fundamental…
On a weekend where I took my daughter to Boston for two nights of voice coaching/recording, needed to watch the Patriots game (on DVR) and a late Rangers game, on a taxing California road trip (it may have been taxing for them too ), I somehow managed to get 35 quality pages done with NFTRH’s 325th edition.
I am happy with the report for the reason I often am when I think I’ve done a good job; I feel I am personally a better investor today than I was on Friday afternoon.
Guest Post by EWI
3 Ways to Identify Support and Resistance – 5 Chart Examples
Today’s lesson considers three ways to identify price support and resistance in the markets you trade.
- Previous highs and lows
- Trendline support
- Fibonacci Ratios
These examples are adapted from Jeffrey Kennedy’s Trader’s Classroom service.
1) Uptrends terminate at resistance while downtrends terminate at support. Previous highs and lows often act as resistance and support.
In ALCOA Inc (AA), the September 2012 selloff found support near the previous July 2012 low.
The February 2013 peak occurred following a test of resistance at the January peak at $9.33.
Continue reading 3 Ways to Identify Support & Resistance
The last post was a little perspective on gold over the long-term. This post calls attention to a post at NFTRH where the writer pops off a bit on the gold bears in light of today’s… what ever it is. Festivities?
I would normally be pretty cautious about a short-covering event like this, but coming off of a gold-negative hype event as it did, driving silver down to the low-end depths of my 14-16 target in pre-market, I find it notable.
Anyway, the post linked above goes into the need to use not only technicals in the gold sector, but importantly sector and macro fundamentals along with other indicators. You don’t friggin’ chart in a vacuum! Especially in the precious metals.
I swear this sector is filled with hyperbole both from the Pom Pom brigade and their evil twins managing what has become an ‘everybody knows’ situation with respect to how bearish gold is. Just ask that weirdo, Willem Buiter over at Citi.
In February of 2013 we noted the big fat HEAD on the HUI’s massive H&S pattern. It was reviewed again in April of 2013 after it broke the neckline in a very bearish move. Mr. Fat Head’s technical objective was and is 100.
Why is this being revisited? Because I have gotten a couple emails noting that it is showing up again out there amidst the very bearish backdrop. If anything, if every gold bug on the planet is planning for 100, the ingredient is in place for this final indignity that they are so well prepared for, to maybe not happen.
But a target is a target and it is there for a reason; namely that its source – Mr. Fat Head in this case – has not been eliminated from the picture. Here he is updated…
There are other considerations…
Continue reading Reacquainting w/ Mr. Fat Head; AKA HUI Monthly