Market Scheming

Friday, April 15, 2011

GPR.TO Update: 6% pop off the bottom of the triangle.

This is an updated for my GPR.TO (Great Panther Silver) post from Wednesday
 Textbook entry into GPR.TO
 

Entry: 3.85

As price action approached the bottom of the triangle mentioned on Wednesday, strong buy pressure kicked in.  This resulted in a 6% move, however this move is dwarfed by 11% in AXR.TO. 

The potential upside for this stock

I am looking to get defensive around the 6.20 area.  The key here is to wait for the triangle to get broken either up or down for a high probability entry.
Looking at this from a Elliot wave perspective, it is likely that the 4 wave triangle will result in a wave along one of the projected paths.  The significance of the triangle is that the wave 2 was a straight  ABC correction and based on Elliot waves law of alternatives this count is more likely to be correct.

"Corrective waves 2 and 4 alternate in pattern" - BASIC FIBONACCI PRINCIPLES


I will update on where stops will be placed.  However, I am going to wait for a definitive break as in this triangle it has been very volatile.



No comments:

Post a Comment