A lot of people in Facebook posted their own renditions of the chart of Lepanto Consolidated Mining (LC) last Friday. So up above is mine.
First target resistance according to textbook charting is somewhere between the 1.48 -1.54 zone, anything higher is gravy (bonus I mean :D).
Comments: Successful close above 1.40 shows dominance of bulls. Further volume and more market participation is likely to make this more interesting the next coming days.
Pivot Point – 1.34/1.35
Best Entry Point from a Risk Reward: Nearest to the pivot point. (Anyone who has shares with average price lower than 1.34 can sit tight with their profitable positions and trail their stops). Anyone looking to enter a position mush have their cut loss points (if trading only using technicals) preferably when the stock closes below 1.34 (textbook charting standpoint.)
Anything between 1.35-1.42 is normal buying/selling from profit takers (bulls and bears), though from June 8’s action, looks like further run-up is possible.
Possible News Catalysts (Via Finance Manila contributors) :
1.) Aquino poised to issue new mining policy next week (TV5)
2.) New mining policy may be issued next week (Business World)
Reminders on how strong psychology can affect a market: (From the book “The New Gatsbys” by Bob Tamarkin, article was reposted by Steve Nison’s Japanese Candlestick charting 2nd edition. )
Hat tip to Mr. G. T for lending the book to me. Thanks 🙂
Soybeans were sharply higher. There was a drought in the Illinois Soybean Belt. And unless it ended soon, there would be a severe shortage of beans… Suddenly a few drops of water slid down a window. “Look,” someone shouted, “Rain!” More than 500 pairs of eyes shifted to the big windows… Then came a steady trickle, which turned into a steady downpour. It was raining in downtown Chicago.
Sell. Buy. Buy. Sell. The shouts cascaded from the traders’ lips with a road that matched the thunder outside. And the price of soybeans began to slowly move down. Then the price of soybeans broke like some tropic fever.
It was pouring in Chicago all right, but no one grows soybeans in Chicago. In the heart of the Soybean Belt, some 300 miles south of Chicago the sky was blue, sunny and very dry. But even if it wasn’t raining on the soybean fields it was in the heads of the traders and that is all that counts. To the market nothing matters unless the market reacts to it. The game is played with the mind and the emotions.
Always Trade with caution. 🙂
A clever hawk hides its claws – Japanese proverb.
– Faceless Trader