Zak’s technical snippets

Tesco – Getting It Right With a Short

This week was something of a first as far as technical analysis and the financial markets are concerned. I do not remember any technical call by an analyst at a major investment house ever being correct. This of course is not an exact science as everyone tends to remember wrong advice and forget the good stuff. But, I did read that analysts at XYZ investment bank suggested that a break below 327p in Tesco – the former July peak could lead the shares much lower. And so this has come to pass. I would give more credit here but, I did make the same call myself and this was not a high degree of difficulty situation for any technician worth their salt!

Winning With Party Digital Entertainment

As I mentioned in the October edition of Spreadbet Magazine, a monthly tip is clearly an opportunity to have a four week lap of honour or, of course, an extended period in the dog house if a call goes the wrong way – a bit like Ceres Power in recent days….

Bwin is a swine of a stock in terms of price action but, I went in here with both hands on a recommendation around the 105p mark on the basis of the positive RSI configuration. Happily, the price chart has now morphed into an inverted head & shoulders reversal. This suggests we could see a return to the June resistance zone above 130p. The best stop loss at this point looks to be an end of day close back below September’s 112p intraday peak – especially given that this is a stock which you would not wish to risk too much on considering its volatility.