VAP Vanguard Australian Property ETF 18/11/2016.

As per earlier post on XPJ ( REIT Sector), I am using VAP ETF as a proxy. You may visit Vanguard Australia website for PDS etc., if you wish. A near perfect XABC correction with the largest correction within it’s late uptrend. A technical development that creates a big concern and a potential topping pattern if my operational time horizon was long term.

How do I read the pattern ? The most recent highest high of the chart @ $92.50 becomes my RESISTANCE  and the low of last week @ $71.70 becomes my SUPPORT  of the anticipated trading range, which is likely to unfold ( marked with Red support & resistance lines). Should we see one ( TR), it may be reasonable to assume that the price action may be traveling within it’s boundaries. Whether or not this happens is another matter off course. I don’t trade what I anticipate which may or may not happen, but rather what the price action tells me. If wrong close the trade and move on. On the daily chart ( not shown) I had a signal to take the trade, which I did.

What is my danger point with VAP long trade ? Low that was made last week @ $71.70 which I want to see hold, on weekly closing basis. If it doesn’t, I would close the trade and move on, win, lose or breakeven .

Zone of $80 is the first resistance zone to watch, which I must add. This helps me calculating my risk/reward.

Disclosure : VAP ETF held.

Weekly VAP ETF chart below.



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