Stock Trading Predictions & Technical Analysis: ABX

Wednesday, November 18, 2009

ABX - Dark Cloud

ABX - WAIT (SELL SIGNAL imminent)

Despite GOLD continuing to move higher, ABX and most Gold stocks were down today. ABX gave us a SELL SIGNAL with a Dark Cloud formation today. However, ABX is still trading within its up trending channel. This means that tomorrow is a critical day for ABX. A move down below $43.00 would break the channel trend and give us another SELL SIGNAL. I did consider selling my position pre-maturely today at a loss, however the fact that ABX also has support at $43.00 made me hold on for now. If ABX does fall below $43.00 tomorrow my stop loss order will get triggered. If you are looking to take a long position in ABX, you should wait and see tomorrow if the price bounces back up and continues to trade within this channel. The SAFE BUY ZONE simply means that ABX does not need to fall off the average -7% stop loss order that you should set to get a SELL ORDER, meaning that you would take on a smaller loss than for other stocks in average. ABX would need to trade around $44.50 and above tomorrow for it to stay up within its up trending channel. So, if the price does bounce back up to this level or higher, it would then be safe again to enter into a position. If you do, make sure to set a Stop Loss order below the lower channel line, which would then be around $44.50. ABX is a WAIT with an imminent SELL SIGNAL.

ABX - LONG

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TECHNICAL INDICATORS

BUY SIGNAL: Indicates the possibility of the start of a new up trend or the continuation of the current up trend. This signal may be often given in the early stages of a potential new up trend that was preceded by a down or sideways trend. Such signals do not always succeed and may fail at time.

BUY: Indicates that the current up trend is already in motion and a BUY SIGNAL was already given earlier. A BUY does not necessarily indicate that the stock will continue higher from here, but simply that the stock is trending up. The further into the trend you decide to take a long position, the more risk you have of seeing it reverse back down sooner rather than later.

STRONG BUY SIGNAL: Indicates a stronger, more significant and reliable signal than a BUY SIGNAL which usually has less chance of failing. Such signals do not always succeed and may fail at time.

STRONG BUY: Indicates that the current up trend is already in motion and that STRONG BUY SIGNAL was already given.

SELL SIGNAL: Indicates the possibility of the start of a new down trend or the continuation of the current down trend. This signal may be often given in the early stages of a potential new down trend that was preceded by an up or sideways trend. Such signals do not always succeed and may fail at time.

SELL: Indicates that the current down trend is already in motion and a SELL SIGNAL was already given earlier. A SELL does not necessarily indicate that the stock will continue lower from here, but simply that the stock is trending down. The further into the trend you decide to sell a position, the more risk you have of seeing it reverse back up.

STRONG SELL SIGNAL: Indicates a stronger, more significant and reliable signal than a SELL SIGNAL which usually has less chance of failing. Such signals do not always succeed and may fail at time.

STRONG SELL: Indicates that the current down trend is already in motion and that STRONG SELL SIGNAL was already given.

HOLD: Indicates that traders who already hold this stock, should hold on as long as the trend persists. This signal is usually given during an up trend for which it would be considered too risky to take a long position at this point.

STRONG HOLD: Indicates that the current trend has been in motion for a while and rarely deviated away from the trend. Although the stock may continue higher, there may not be enough potential up side to trigger a BUY SIGNAL. This type of indicator usually means that the stock has very strong support levels which may have been tested but not broken.

WAIT: Usually given during a sideways trend for which we are waiting for a move that would trigger a BUY SIGNAL or SELL SIGNAL. This could also indicate uncertainty and the risk that would be taken if you were to take a long position at the current level. Taking a long position after giving a WAIT indicator is considered a gamble.