Waves

[sponono]

Rams: now that this stock has fallen throuhg R300 what do the waves have to say. I've always been suspecious of stocks with a weak relative performance index.

[Rams]

Agree, but in correction,so will uderperform index.Recent price moves confirms wave C correction,but now the Flat ABC correction has become a Zigzag ABC correction.When,stoch shows bullish reversal on daily charts, that signals a probable wave c low and setup for a long trades.Relative strength will probly start to improve at WAVE C low,so no buy signal yet until all the technicals confirm. By the way,61.8% retrace was at wave A low........

[Rams]

If Mondays high takes out todays high on a blue candle-Wave C Low will be confirmed: Time for long trade on IMP.

[striker]

- I am always intrigued by the analysis of T/A disciples. Don't you guys ever consider events in the real world in your thinking? For me the only the only wave that affected the share price on Friday was the big one in Japan.

[raps]

Looks like a head and shoulder pattern from Oct 2010. I still there is further downside to the 150 level. What do you think?

[Rams]

Yes,sponono has pointed that out last week I think-a very neat and symmetrical Head and shoulder patttern. If wave c low is past the 61.8% retracement( and asp pointed out IMP is past 61.8%), then may not be a correction but a new trend(bear). Then IMP would be in wave 3 now and this would be highly probable if the 78.6% retracemnt(185.00) is passed- if this occuurs ,then any bounce would be shortable at the end of wave 4.Interesting chart because since we posted this as a possible long some weeks ago, there has not been a trigger for the long.(Analysis Paralysis?)

[sponono]

one of the NEVERS of trading is to buy a stock that underperforms the market. it does not matter what Elliot Waves says, if the the stock is an underperformer just avoid it. ALSI one year up 10%, IMP Flat, ALSi three years up 1,8%, IMP down 40%. This is underperformance at its best.

[raps]

I just like IMP. It usually has a strong trend, either up or down, which is what I like in a share. Waiting to enter a suitable short position.

[striker]

You mean like head and shoulders above the rest.

[Rams]

I agree Sponono, but Elliot Waves and Fib must be used with other indicators, at least 2 other and all must confirm; remember there was never a long trade buy signal on this share...the setup was there but not the trigger....

[Rams]

Still holding up above key technical level of 185.00. Today will be interesting ....

[Rams]

Finally, the trigger for a long.But as Sponono pointed out, realtive strength -so tight stop loss at WAVE C Low,at 184.10. If goes thru that, then must exit...