From within XIJ (My Favourite Sector) and beaten down in recent times ACX. I will dive into the daily time frame and do my analysis bar by bar at important turning points. That is what I have learnt (reading the individual bars) when I did my CFTe back in 2010-2011. But before I do that, I would like to highlight the potential Wyckoff Accumulation Pattern first, which can be seen on the chart. Pattern recognition followed by trigger for entry or action. This is shown on the chart also. Volume on the retest was far greater than that of SC ( Selling Climax) which is not ideal. Not a perfect set up I must say, but, is there anything that is perfect in this game of speculation ? No my answer is.
What happens on the 25th ? A bullish pivot point is completed which also negates the support break. On this day ( 25th) bulls regained total control + shown full commitment. Price action of yesterday (26/10) and today(27/10) may be seen as an absorbtion of any left overs by the smart money.Bears have been unable to re assert either control or commitment. Buyers aren’t keen either.Indecision is obvious in the last couple of sessions.
My entry was intra day, based on a smaller Wyckoff Accumulation Pattern which was evident on the 30 minute chart on 24/10. Pattern recognition + trigger are two things which had completed the trade for me. A little luck always helps, regardless of who says what.
I have marked the danger point which I would want to see hold. That is, the low made on my entry day of 24/10 @ $5.19 MUST HOLD. If I am aggressive and very short term orientated, I would want to see the low of yesterday @ $5.75 hold on end of day closing basis, not intra day whipsaw. Why one may ask ? If the price closes below yesterday’s low that would complete a bearish pivot point which may require action.
Do I know where ACX may be headed even if I take counts ? No I don’t. I can/will look for a sign of weakness where it would prompt me to act.Until then a waiting game.
If I put this analysis to an accomplished Wyckoffian Prof. Bruce Fraser of GGU, I wonder If I would get his tick of approval ? He would probably fail me !
Disclosure : ACX held.
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