Monday, June 20, 2011

SLW Chart Request

 On the daily chart, SLW looks very much like a H&S top, possibly getting ready to make a right shoulder. While the longer perspective looks bearish hear, there appears to be a swing trade opportunity on the long side. I don't even need my custom cumulative indicator for volume to see this is typical top volume. RSI and my long setting MACD ( 26/52/3) also confirm negative divergences at the top, where the indicators should be making higher highs, they are making lower lows. Still, the point of this post is for a swing trade on the long side.

 The daily 3C chart called the top and is now in a positive divergence near the neck line support.

 The 30 min 3C chart shows the last cycle, accumulation-confirmation-distribution and decline. We would now be at stage 1 accumulation with the current positive divergence.

 The 15 min chart is in both relative and a leading positive divergence.

 The 3 day Trend Channel has held the trend in SLW very well, I'll use it as an upside target around $35.50-$36

For a swing trade, I would suggest trailing a stop, the 30 bar simple moving average on a 60 min chart has worked well, this would be my trailing stop for a long position in SLW.

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