Thursday, December 22, 2016

$ALT/$CAL 3

Today's change in $ALT's par value has confirmed that the stock has resumed its downtrend...

That is at least what I see as far as this chart is concern...



Wave 1-2 is complete and $ALT now is moving to Wave 1-3.

As for me, the best decision to take is either to cut loss or reduce my position.

That is contrary to what one "master" I know believes...

For him, the time to reduce position is when the stock is going up...

The fall is an opportunity to add...

I do the same provided the trend is up...

Motivating myself to keep monitoring the stock is the reason why I prefer not to completely sell all my shares, but just reduce its size and maintain a minimum number of shares...

Thinking of re-entering at historical supports (9.00/7.60) and trendline support (6.30)...

Or I can just simply wait for the cycle to be finished...

As for $CAL, I got confused with that 2.80 price bar...


I am getting older...

My eyes betrayed me...

I thought the high of the 2.80 price bar is higher than the previous candlestick...

But as I was checking $CAL's chart this afternoon, I observed that they have the same high price...

Anyway, I counted that 2.80 price bar as the end point of Wave A...

That's the reason I came to the conclusion that Wave C is done...

If my previous chart does still work, then the pullback today is the last before the start of a series of uptrend waves...

However, if my previous chart was wrong, then $CAL now is still completing Wave C...

Wave C-4 in particular searching for its low...

What might come next is a bounce followed by a pullback, and then a rally...

Not unless of course someone thinks that despite of $CAL's big drop, it would still resume its downtrend...

If that's the case, then another reading is needed...

And just this morning, 23 December as I was checking stocks' charts...

I started with A-stocks and then got stranded with a C-stock...

$CAL again...

As I look to its chart, I was reminded of an old chart I made...

That one took for granted the exact number of price bars...

But considered more the highs and lows and the channel...

Seeing this chart again changed my mind...

This chart seems natural, not forced, and clearer...

I am thinking of using this chart in trading $CAL...


This chart shows that $CAL is about to complete Wave 4...

I am expecting a bounce...

And then a resumption of downtrend to finish Wave 5...

2.20 can be a bottom candidate...

Worst case scenario is @ 1.80...

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