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- 12 January 2008
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You're thinking, what is a short term momentum trader doing looking at this sector? A good opportunity is what I'm looking for and it doesn't matter which sector it is. Right now, this ol' REIT sector is presenting one. I'm using SGP as the example, but this opportunity is present in many charts in this sector.
1. By going sideways for the past month SGP is stronger than the XAO index (top chart).
2. The volume indicator TMF is rising (along with the OBV) indicating accumulation and demand. The TMF is above zero and has broken higher before price.
3. The downside exposure for this opportunity is low (0.20). If price falls <4.00, this opportunity is invalid. (But that might produce another, eg a spring)
4. If price does go higher then the initial target of the old highs produces a good RR of 3:1.
Thanks to nulla nulla for keeping us informed on his favourite sector. If others posted regularly on their favourite sector the forum community would be much richer for it.
1. By going sideways for the past month SGP is stronger than the XAO index (top chart).
2. The volume indicator TMF is rising (along with the OBV) indicating accumulation and demand. The TMF is above zero and has broken higher before price.
3. The downside exposure for this opportunity is low (0.20). If price falls <4.00, this opportunity is invalid. (But that might produce another, eg a spring)
4. If price does go higher then the initial target of the old highs produces a good RR of 3:1.
Thanks to nulla nulla for keeping us informed on his favourite sector. If others posted regularly on their favourite sector the forum community would be much richer for it.