Absolute Top

High probability opportunity

We tend to trade mainly US stocks but on occasions UK stocks offer a good high probability opportunity.

Our last high probability opportunity was Tesco (TSCO-Lon) which has played out very well with multiple positions since the break of support. Yesterday price has experienced a slight pullback but nothing out of the ordinary.

tsco downtrend

Today we may have a new high probability opportunity setting up with Experian (EXPN-Lon). We still require the signals from our preferred trend trading strategy before entering a test position in this but at present it is showing signs that weakness is to follow.

Experian trending down

Charts courtesy of eSignal Advanced GET. Top is a weekly view and bottom is a daily view.

Notice on the daily chart price has been rejected at the 200 moving average after each test since price broke below it at the end of 2013. Price needs to stay below the big figure and preferably this bear flag contender needs to confirm the chart pattern.

Monthly (chart not shown) is also showing some signs of weakness.

If price produces a fake breakdown below the 200 moving average on the weekly and moves back above the big figure then we have not lost anything but if price breaks down from here and we see a good continuation then we should aim to add to our pilot position in the same way we did with Tesco.

Good trend trading…

Javid Shaik

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