200SMA BounceFor those who have been reading my blog and newsletters, you know how much I like the 200SMA bounce and how successful that technical setup has proven itself to be. For those who have not read them, you can find an archive of them here where you can also find a link to signup to the newsletter.
Golden Hope has now been flirting with the 200SMA over the last few days and indicators seem to be ready to turn upwards. We've been posting lower highs recently and the apex is nearing and converging on the 200SMA.
I would peg an entry here at
.435 with a stop loss at
.39 and first target being the center line of the trending rectangle at
.57 for gains of 31% followed by the upper rectangle resistance line at
.66 for gains of 51.7%.
You can see chart here.
Patterns and formations is what makes Technical Analysis such a great way to invest in the market place and that is the reason why I created a series of Chart Pattern Flash Cards to help you identify these pattern and trade then successfully. Each of the 20 cards in the set includes a commentary on the pattern, its success rate, the duration and expected volume of the pattern and tips on how to trade the pattern. A must for any Technical Analyst who wants to take full advantage of chart patterns and trade them properly.
Cheers!