If I'm analyzing a market, I always force myself to consider what the "other side" is thinking.
In other words, if my research suggests a buy, I take a good long look at the chart, fundamentals and the market in general and think about what the bears might be thinking.
I do this to try and ensure I don't miss anything. At least nothing glaringly obvious!
A couple of days ago I posted an AMS chart, which in many ways is similar to AGL.
And once again, I'm interested in the short side.
Now, if I was interested in a long, what would I be after?
Very simple answer when you look at this chart - if I wanted to buy, you wouldn't get me to place an order before 32600 at the very best. A buy here or anywhere before that is in no mans land, and if I were a long-term bull, like so many fund managers have to be, I want to buy at the best value that I can.
So, if there is no point in buying until 32600, I'm happy to short here instead.
In other words, if my research suggests a buy, I take a good long look at the chart, fundamentals and the market in general and think about what the bears might be thinking.
I do this to try and ensure I don't miss anything. At least nothing glaringly obvious!
A couple of days ago I posted an AMS chart, which in many ways is similar to AGL.
And once again, I'm interested in the short side.
Now, if I was interested in a long, what would I be after?
Very simple answer when you look at this chart - if I wanted to buy, you wouldn't get me to place an order before 32600 at the very best. A buy here or anywhere before that is in no mans land, and if I were a long-term bull, like so many fund managers have to be, I want to buy at the best value that I can.
So, if there is no point in buying until 32600, I'm happy to short here instead.
Order cancelled