Despite the U.S. problems, here are 3 Australian stocks looking technically good

IAG, NEA and ALL are three ASX listed stocks which are technically looking strong, despite the overall sell off of global markets recently.

IAG has been tracking in a long sideways pattern with resistance at $6. It broke that today and despite it coming off by around 10 cents at the time of writing, it is showing all the hallmarks of a potentially good trade.

NEA had a huge volume of sellers sitting on the sell side of the ledger at 40 cents. This is exactly in line with resistance. However the huge volume of NEA shares traded today has pushed through resistance. We are looking for a close above 40 cents today. The very broad ascending triangle pattern is indicating a long term upside target of 80 cents.

In our most recent free newsletter we said that ALL is a buy if it broke above $4.75. ALL has broken long term overhead resistance at $4.75 and by our reckoning, the stock will slowly track upwards by around $3 over the coming months.

We will provide charts of these stocks and updated analysis in our next FREE FORTNIGHTLY newsletter, posted as always on this blog. Back copies are available free from our website, www.stpt.com.au

Our latest newsletter is available

Its a time to take caution.

Our latest FREE fortnightly newsletter is available for download from HERE

Visit us at www.stpt.com.au

Check out our newsletter and article archive from here

A look at international markets

We always take an interest in international markets because of their influence over our own market. In the attached PDF we look at the charts of some international markets.

DOWNLOAD THE PDF HERE

Don't forget to visit us at www.stpt.com.au Where you can find free articles, our back catalogue of our newsletter and where you can buy your Ebook versions of Simple Tactics, Profitable Trading and The Mental Trader.

Dressing up CDU instead of speculating without any pants on

In the attached article we look at how I take a stock like CDU which as recently had a lot of excitement surrounding it, and analyze the stock using my prefered technical techniques until one of them can successfully be applied. If none of my techniques could be applied, I would leave CDU on the watch list and not touch it until it satisfied me further.

As shown in this brief article, CDU fails on two techniques, but is workable as a trade using my DEMAC technique.

DOWNLOAD THE ARTICLE HERE

Can we redraw trendlines? We start an experiment

In our PDF article attached to this blog post, we discuss a circumstance where we may be able to redraw a trendline. In our case, we are doing an experiment using the ASX code, MYR. To download the article, click here

Visit us at www.stpt.com.au
You can get our latest FREE newsletter from here
And you can get previous newsletters in date order and free articles from here
Trading psychology podcasts can be obtained from here

Our latest FREE fortnightly newsletter is now available for download from HERE.

In this issue we follow up on some previously mentioned stocks such as ALQ, ASL, EVN and PAN. We also look at SEK, ALL and NVT.

This newsletter is free to anyone to download, however, its main purpose is to act as an educational supplement and to demonstrate in near real-time, the personally devised techniques outlined in the book Simple Tactics, Profitable Trading available HERE.

Those who have bought the book can see our application of our techniques and decide for themselves whether or not some or all of these techniques are useful in their own pursuit of profit.

Visit us at stpt.com.au

SEK is making a great flag pattern

SEK is making a great flag pattern and a breakout above $11 could see it head towards $12.80.



Don't forget to visit us at www.stpt.com.au

ALSO, dont forget to check out our Trading Psychology Blog HERE

We have started a series of articles on trading psychology on this blog. These articles are based on material in our NEW BOOK, THE MENTAL TRADER: Winning the Mental Tug of War in the Market.

BOOK LAUNCH DISCOUNT SPECIAL

This book has been reviewed by Daryl Guppy and Alan Hull.

ABOUT THE BOOK, Daryl says:

"I think he (PAUL) has got some useful and interesting things to say. Thisisnew material and a good guide for new and existing traders."

ABOUT THE BOOK, Alan says:

"Hi Paul, just finished reading your book and I believe it to be a well written book with some very worthwhile insights - its engaging, anecdotal and reflects the fact that you are obviously well read yourself and an experienced trader/investor. I would recommend it to my students but I would place the caveat on it that it requires a degree of prerequisite knowledge and market experience."

Thanks Daryl and Alan.

Our Latest Fortnightly Newsletter is NOW AVAILABLE

Sorry folks, we didn't post a newsletter in the past fornight due to an unscheduled, late winter vacation, BUT WE ARE BACK.
To download the latest newsletter with plenty of charting and trading ideas, CLICK HERE

Stocks we chart include ASL, BKN, MCR and PAN.

Don't forget to visit us at www.stpt.com.au

Beware bad advice on stock fundamentals.....we use Fleetwood as an example.

Download our article on bad advice and we take the opportunity to remind investors that dividend yields reported in the newspaper are based on historic payouts....they should not be deemed to accurately reflect future payouts.

Down the article from here.

Fleetwood 12 month chart

Don't forget to visit us at www.stpt.com.au

ALSO, dont forget to check out our Trading Psychology Blog HERE

We have started a series of articles on trading psychology on this blog. These articles are based on material in our NEW BOOK, THE MENTAL TRADER: Winning the Mental Tug of War in the Market.

BOOK LAUNCH DISCOUNT SPECIAL

This book has been reviewed by Daryl Guppy and Alan Hull.

ABOUT THE BOOK, Daryl says:

"I think he (PAUL) has got some useful and interesting things to say. Thisisnew material and a good guide for new and existing traders."

ABOUT THE BOOK, Alan says:

"Hi Paul, just finished reading your book and I believe it to be a well written book with some very worthwhile insights - its engaging, anecdotal and reflects the fact that you are obviously well read yourself and an experienced trader/investor. I would recommend it to my students but I would place the caveat on it that it requires a degree of prerequisite knowledge and market experience."

Thanks Daryl and Alan.

Select Harvest - SHV. Listed on the ASX. Article Title: What is the price of almonds?

We have uploaded a new article entitled What is the price of almonds? It looks at the stock SHV and some issues surrounding watching the fundamentals versus the stock price to work out whether the stock is a buy, hold or sell.

Please download the free article in PDF located HERE

Australian Charts of Interest

BHP is a powerhouse stock on the Australian Stock Exchange. It is the 2nd largest stock by capitalisation and it is a real market mover and shaker. Usually the market follows BHP's direction. So when it is bullish, our broader market typically follows.

Between April and July this year, BHP made a double bottom pattern. Underlying sentiment was weak and while we noted this double bottom pattern in our newsletter at the time, we chose not to buy into the stock. At the same time, Nick Radge and Steven Hogan noted the BHP double bottom but their disinterest in buying the stock (both made comments on the TV program Your Money, Your Call).

Yesterday BHP broke through $35 and closed at $35.17. Today it has gone on with the job. Coincidently, the underlying sentiment indicator that we prefer to use (55 day stochastic - refer to our book, Simple Tactics, Profitable Trading for our non traditional application of this indicator), also turned bullish.

We show the BHP chart below with a potential upside target marked on the chart.

Don't forget to visit us at www.stpt.com.au where we have links to FREE articles, our FREE newsletter archive and our two Ebooks for sale.

Latest Newsletter is now available

Our new FREE fortnightly NEWSLETTER is now available from here - DOWNLOAD - right click and save as if you want.

We are still looking at stocks like JBH, IMD, BXB and AGO.

If you have missed an issue, you can go to our ARTICLE ARCHIVE page to find back issues.

Visit us at www.stpt.com.au

Our lastest FREE NEWSLETTER is available for download

Our lastest FREE NEWSLETTER is available for download. CLICK HERE

In this newsletter we note that the ASX200 is showing signs of a shift from the bearish bias of two weeks ago, to a moderate bullish bias. There are a lot more stocks coming up on our radar right now. The trick for investors and traders is to identify the ones with the strongest possiblity of sustained share price appreciation over either the short term or long term, depending on your time frame and style of investing or trading.

My style, as outlined in my Ebook, Simple Tactics, Profitable Trading (buy it here) (download free chapter here), is typically shorter term, so the stocks I find to trade and which I discuss in this blog and in our FREE fortnightly newsletter, often fit my personality and trading profile.

As always I remind readers that the FREE fortnightly newsletter is open to everyone to download but its principle function is to act as an educational supplement for those who have bought my books. The newsletter allows me an avenue to demonstrate the original trading techniques discussed in my books, in near-real-time market conditions. We do this for two reasons. First, we want to prove in a public forum that our personally devised techniques really work (in other words, we are not full of shit). Secondly, we want to offer ongoing education for those who sometimes struggle with the trading examples shown in the book or with our explanations in the book.

Dont forget to visit us at www.stpt.com.au

Recent stocks of interest

Are you watching CBA? In our last FREE Newsletter we told you to watch five charts. CBA and BHP were two of those charts. CBA is trying hard to get back above the long term trend line and resume the rally. If the bulls are successful in doing this, the broader ASX200 will rally because of two things. Firstly, there is a trickle down effect. CBA is the largest listed stock on the XJO by capitalisation. Therefore, when it rallies, like yesterday, it lifts the XJO by about 15 points by itself, so our market looks like its going in the right direction. Secondly, this bullishness has an effect on the entire market like a vortex and it sucks in day traders and other investors and traders who (impulsively) decide they need to be a part of the rally. As a result, we get some overflow of money from the leading stocks such as CBA and BHP into second tier stocks such as ANZ, RIO and so on.

Stocks which have hit our radar screen are NVT, NXT and ALL. Their charts are provided below.

Our latest newsletter is available for download

Sorry we missed a week, but our latest FREE newsletter is now available for download.

CLICK HERE

And dont forget to visit us at www.stpt.com.au

More updates and charts to follow as we begin our New Financial Year in Australia.

Latest Newsletter Now Available

Please feel free to download our latest FREE newsletter.

It is available from HERE

IAU - an interesting but risky play

IAU is in play. Shareholders will have to vote on June 18 and decide to stick with the current board or hand the company over to the suitor (Quantum). For the full story go to the company's website here.

The stock is currently making a saucer bottom which is a reversal pattern. I would suggest that this pattern is being driven by increased volume, slowly - and I stress SLOWLY - chasing prices higher. The buyers could very well be based in one of the two camps struggling for control of the company and this can be an exploitable situation for short term traders.

We could buy the stock at say 33 cents with a view that over the next three weeks, the stock will increasingly become hotly contested as the vote on June 18 gets closer. The more stock you own, the greater your influence on the vote, therefore, you would imagine that stakeholders in this company such as directors and large shareholders will be keen to soak up stock as they head into the vote.

Its a risky play.

Look at the bottom line of this snapshot of the market depth. Over nine million shares are on the bid side and only 1.6 million are on offer. We hope this sort of buying pressure forces IAU's share price up towards 50 cents over the next three weeks to allow us to capture a short term proft.

Dont forget to download our latest FREE NEWSLETTER

Our new FREE fortnightly newsletter is now available.

Please feel free to download this fortnight's newsletter.

CLICK HERE TO DOWNLOAD YOUR FREE COPY NOW

ALSO, dont forget to check out our Trading Psychology Blog HERE
We have started a series of articles on trading psychology on this blog. These articles are based on material in our NEW BOOK, THE MENTAL TRADER: Winning the Mental Tug of War in the Market.

BOOK LAUNCH DISCOUNT SPECIAL

This book has been reviewed by Daryl Guppy and Alan Hull.

ABOUT THE BOOK, Daryl says:

"I think he (PAUL) has got some useful and interesting things to say. Thisisnew material and a good guide for new and existing traders."

ABOUT THE BOOK, Alan says:

"Hi Paul, just finished reading your book and I believe it to be a well written book with some very worthwhile insights - its engaging, anecdotal and reflects the fact that you are obviously well read yourself and an experienced trader/investor. I would recommend it to my students but I would place the caveat on it that it requires a degree of prerequisite knowledge and market experience."

Thanks Daryl and Alan.

AGO and CCL

If you've been following our FREE fortnightly newsletter (go here for archived newsletters) you will know that we were looking for a bounce in the AGO share price based on the practical application of our RCR technique (to learn more about this technique, buy our Ebook here). We also said that the RCR gave us a stop-loss level of 86.5 cents. Any close below that meant it was time to abandon AGO. That time has come.

Those who have already bought our Ebook can use the ASX ticker code AGO as a relevant example for this technique as outlined in this book. This blog will continue to discuss trading examples that utilise the proven application of indicators shown in the book.

Let's turn to the ticker CCL listed on the ASX. It will seem inconceivable to some readers that this blue chip stock could fall back to $11, but this is exactly what the chart is telling us.

Application of standard technical analysis of the inverted or upside flag pattern which is forming in the CCL chart, suggests that the stock will look for a short term bottom at $11.

Watch out below. If the stock breaks above $13.50 however, this analysis becomes null and void.

Visit us at www.stpt.com.au

Flag me up Scotty

Imagine you are a trader with limited funds and you identify three potential flag patterns developing in the Australian market. Which one do you trade?

This is where a trading plan, a trading philosophy and the tick-in-the-box approach comes in handy. I discuss these things in my book Simple Tactics, Profitable Trading and owners of this book know what I am talking about when I reference it here in this blog.

So, our three stocks are BHP, STO and QBE. We will update these charts at the end of the week when we publish our next FREE fortnightly newsletter (back issues available here).

All three stocks look fairly similar but we prefer to trade with as much safety as possible so we look at a small number of variables or indicators and trade only those stocks which have all the variables lining up at the same time.

Only one of these stocks is suitable for us at the moment. We will reveal which one we are personally trading in our newsletter at the end of the week.

Here are the charts.
   

Visit us at www.stpt.com.au

BOOK LAUNCH DISCOUNT SPECIAL

One for the Short Sellers

Boral (BLD) recently came out with a weak report. The market sold the company down from $5.08 to $4.31 and now the company sits just above $4.50. This sell off is the first in a two step sell off. The first sell off has established an inverted or upside flag pattern. This is a bearish pattern with a high probability of success. If BLD breaks below the $4.40 level, there is a strong chance it will work its way down to our downside target of around $3.65.

We will follow the progress of BLD in our next Free Newsletter available from this blog and from our website, www.stpt.com.au



BHP looks good on the surface but underlying weakness tells us a different story

A rudimentaryobservation of the BHP chart shows the foundation of a bullish flag pattern under construction. However, more seasoned traders know that it is vital to have at least one indicator supporting the pattern development. We prefer to use the stochastic indicator. As outlined in my book, Simple Tactics, Profitable Trading (read a free sample chapter here), we know that there is a strong correlation between this indicator and the quality of breakouts.

Flag patterns are a breakout set up and without underlying momentum in the stock (as indicated by the stochastic indicator) the breakout is usually weak and there is even a chance that the breakout fails to eventuate. For this reason we would be holding off from buying BHP at the moment. Recent price action looks good, but it appears that the market as a whole, is not yet buying into BHP being valued much higher than$35 on the top side.

BOOK LAUNCH DISCOUNT SPECIAL

This book has been reviewed by Daryl Guppy and Alan Hull.

ABOUT THE BOOK, Daryl says:

"I think he (PAUL) has got some useful and interesting things to say. Thisisnew material and a good guide for new and existing traders."

ABOUT THE BOOK, Alan says:

"Hi Paul, just finished reading your book and I believe it to be a well written book with some very worthwhile insights - its engaging, anecdotal and reflects the fact that you are obviously well read yourself and an experienced trader/investor. I would recommend it to my students but I would place the caveat on it that it requires a degree of prerequisite knowledge and market experience."

Thanks Daryl and Alan.

Our Latest Newsletter is ready for download

The latest issue of our FREE fortnightly newsletter is now ready for download. In it we follow up on BHP and AGO from last time and we update the NEN chart from our post on this blog from last week.

CLICK HERE TO DOWNLOAD YOUR FREE COPY NOW

ALSO, dont forget to check out our Trading Psychology Blog HERE
We have started a series of articles on trading psychology on this blog. These articles are based on material in our NEW BOOK, THE MENTAL TRADER: Winning the Mental Tug of War in the Market.

BOOK LAUNCH DISCOUNT SPECIAL

This book has been reviewed by Daryl Guppy and Alan Hull.

ABOUT THE BOOK, Daryl says:

"I think he (PAUL) has got some useful and interesting things to say. Thisisnew material and a good guide for new and existing traders."

ABOUT THE BOOK, Alan says:

"Hi Paul, just finished reading your book and I believe it to be a well written book with some very worthwhile insights - its engaging, anecdotal and reflects the fact that you are obviously well read yourself and an experienced trader/investor. I would recommend it to my students but I would place the caveat on it that it requires a degree of prerequisite knowledge and market experience."

Thanks Daryl and Alan.

Small Energy Stock Making All The Right Technical Moves

Our Range-Change-Ratio technique is designed to help us identify where the stale, bearish money in a stock finally becomes exhausted and begins being replaced by new, bullish money. It is a technqiue that uses price and volume to give us our entry signal. For more on this technique checkit out in our eBook, Simple Tactics Profitable Trading.

The chart below is of a stock which has recently generated an RCR entry signal of 71%. It is a small energy play listed on the ASX. Will it hit the neon lights of the big time? Maybe.....maybe not. But we make note of the chart as it currently stands at the end of the trading week because we intend to follow up this stock next week in our FREE fortnightly newsletter (current issue can be downloaded here) as an example how the RCR can be used in real time market conditions to generate an entry signal.

The Chart:

In the meantime, dont forget our other webpages:

http://www.thementaltrader.blogspot.com.au/

http://www.meetup.com/trading-psychology/

www.stpt.com.au

Check out our new FREE newsletter

Most readers of this blog have probably come from my website, www.stpt.com.au or bought the 1st edition of my book Simple Tactics, Profitable Trading. For those who do not fall into one of those categories, you may like to know that we are now writing a FREE fortnightly newsletter which acts a supplementary educational tool for those who have bought my book.

The book shows various trading techniques that I have personally developed and to prove that these techniques work and to help people understand how I apply them in real time market conditions, I have commenced this FREE fortnightly newsletter. You dont have to own the book to download the newsletter and you dont have to buy the book.

Download the latest issue by CLICK HERE 

Dear all Traders, Investors and Readers,

We are back for 2013.

GFF and WPL are making similar sideways trend channels and have recently caught our interest from both a technical and a psychological perspective. To read our brief view on these two stocks download the attached PDF HERE.

To read up on the psychological perspective, join us at http://www.meetup.com/trading-psychology/

GFF

WPL

Find out more about us at The Technical Report