WATCHLIST & STALKING are very important in WYCKOFF METHOD. Without them analysis is not possible. It requires a large amount of patience and study of charts.
I have exchanged some PPT charts via email with my friend James, who lives up the road from me here in Melbourne over the weekend.
We both picked the HEAD & SHOULDERS TOP which had it’s BEARISH target exceeded as of this writing. In addition to that we have looked at the BEARISH P&F TARGET for PPT which is not yet met. That target is at $43.50. Will it get there ? No one knows. But one thing for sure is that the current downtrend of the daily may be coming to an end. Confirmation by price action is always first and foremost and that is yet to be received. Even if it is on hand that doesn’t mean that the down trend of daily is reversed. All it would mean is that a halt to this strong daily downtrend.
Why did I bring PPT up ? The VOLUME of the last few trading days caught my eye ( check the daily chart at the top), I have been stalking it ever since the completion of the H&S TOP. A huge increase in volume at a MAJOR CHART SUPPOPRT of WEEKLY TIME FRAME (Bottom Chart), was like having a SCLX ( Selling Climax ). We will only know whether or not that may be the case after a while when the AR ( Automatic Rally ) is confirmed. But for now it is in my WYCKOFF STALKING WATCHLIST.
On the WEEKLY CHART take a look at the UP TRENDING CHANNEL with 2 solid pink support/as well as resistance lines. Third dashed pink line is what I consider as OVERBOUGHT LINE . I have also marked the most recent as well as the prior corrective periods with BLUE, in case someone wants to zoom in with their charting package, to examine the overbought conditions/top formation.
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