This is how you get prepared for the stock start


Again, a stock week is over....for most of us very exciting again and again and successful, we hope, provided that the general upwards trend of the stock markets was joined in trading.


But for many of us the trading week goes on through a great part of the weekend. During the weekend, the passed week is analyzed once again, the committed mistakes are reflected on, and the trading diary is being revised, the depot checks are carried out etc.


But in order to make sure the successful start into the next week it's necessary to do some technical analysis work with the charts.


The 15 minute analysis for a successful start of the week with the GUNNER24 Forecasting Method


To define the general trend and detect some possible points of change within the week let's have a look at the weekly chart at first and then to the daily one. I chose the YM # contract:




The situation: It's obvious that we are in a strong upwards trend. After having broken the 2nd double arc, the price follows the Gann Angle which supplies support. For the next week, it will be at 10415. Next week, we might also reach the main target of the entire move at 10710. It is necessary there to wait and see the performance of the price. Well, with the last candle we also closed in the acceleration zone. That promises rapid price moves.


In the daily chart, it's looking positively, likewise:




The price is in the support zone walking straightly to its main target. Next week's resistance is at 10750, the support at 10280. A possible moment for a high or a low is the center of the just passed square. That will be Thursday, 01/14/2010.


The analysis proves: We are in an upwards trend and at least through Wednesday, we should remain on the long side only.


To analyze the stock start, at first we consult the 4 hour chart, then the 1 hour and at last the 15 minute chart.




The 4 hour chart shows us: We will reach the 4th double arc towards the trend because the 3rd double arc was broken. But by the high of the last candle (A) the resistance zone was touched and any penetration into that zone should go pretty slow-moving. Every up gap is limited by the 4th double arc which should provide a stronger resistance where a short with a very narrow stop is possible... but really just as a scalp.


Support is provided by the 1*2 Gann Angle which was confirmed successfully at point B. In those surroundings we go long. All in all, next week should start as well as last week was, rather slow-moving...


Applying the 2 Candle GUNNER24 Up Setup we can see the setup has expired. But we see very well the price following the double arcs. Well, on Friday it tested back the 5th double arc at point A.




That means in this time frame, too, the uptrend is preserved for us through many hours of Monday! But since there is a resistance zone (point B) in the Friday high as well as in the 4 hour chart the price will have difficulties to overcome that resistance within the first 4 to 5 trading hours...  unless it opens with a gap above it.


So let's apply the actually valid 1 Candle GUNNER24 Up Setup in the 1 hour chart:




Since at 10575, there is a greater resistance area the price should not overcome the first double arc at stock start. At first, it should follow the double arc downwards. But since the price closed within the first double arc it should reach the 2nd double arc in this time frame, as well. The support zone begins at 10542 and it ends at the Gann Angle at about 10525 thus fixing our buy area.


Let's have a con firming look at the 15 minute chart:



Here, we are 1.5 hours before reaching the main target, then the price should follow the 3rd double arc downwards. The Gann Angle which once provided a strong support already is offering itself as a possible target. Here, too, the buy area is around 10530!


Please take into consideration that a long entry around 10540 would be reasonable. But if the price does not follow the double arcs in the 1 hour and in the 15 minute charts downwards there would be only two options for the price:


1. It continues fighting with the resistance around 10570 walking very slowly and tenaciously but always sideways or slightly upwards. In that case we will be looking for a long entry when the first double arc in the 1 hour time frame is overcome undoubtedly.


2. It gaps upwards at the opening, overcomes the resistance double arcs in the 1 hour and 15 minute time frame. In that case, at the first greater correction you may go long, of course, if the gap is not too big.



Be prepared!


Eduard Altmann