GUIA trade ideas
DEO breaks out of ascending triangle to gap above .50 FibEstablish long position now and accumulate strongly if shares break above 143.75.
DEO shares rose 1.33% on 11/8 and closed near the top their range, forming a bullish pin candlestick. This comes after having opened significantly higher (>$3) than the previous close, leaving a gap around $140 that may enact some gravitational pull on share prices in the near-term. This risk is far outweighed, in my view, by looks to be a break out out from an ascending triangle continuation pattern, an interpretation which would allow shares to move quickly higher into 2019 as they reclaim and then far outpace the appreciation they enjoyed in September.
- Bullish cross of DI+ above DI- reflect the lower highs and higher lows throughout October, a classic sign of an ascending triangle continuation pattern. After a brief but intense period of consolidation, the buying pressure in the stock has finally 'won' out, and yesterday's bullish
- While ADX continues to decline further below 20, this is acceptable in my view given the large positive and negative swings associated with triangle consolidation. Note: ADX measures strength (but not direction) of trends, and levels below 20 are generally associated with weakening or non-trending (rangebound) shares. This is technically the weakest part of the chart, and improvement in this line back above 20 would give strong incremental confirmation of the potential bullish continuation.
- I still think some shares are definitely worth buying before this occurs. Looking closer at ADX, the rate of decline has been decelerating over the past week, and the rightmost edge of the line has just shown a minor but undeniable inflection back into an upward slope.
- MUCH MORE IMPORTANT (and more intuitive), the movement of the ADX line shows visible correlation with the green DI+ line throughout October's ups and down. Since DI+ and D- are measures of trend direction (cumulative recent up moves vs. down moves), the relationship suggested strong commitment from Bulls throughout the month of October, 'stepping up' to fuel brief recoveries while not strong enough to notch higher highs (hence Rising Triangle).
--------
Rough Notes:
*** The idea is that these mini-rallies, with the DI+ crossing above DI-), create pent-up volume...confirmed in BOTH signals... would lvoe to have three but might as well take a chance now...shares look cheap, The one bar outside the triangle suggested
Current share prices of are ALMOST EXACTLY EQUIDISTANT in upside/downside between 52-week high and low.
at first that the bears shows INDECISION, another debatably positive sign in my view
(Bulls are 'stepping up' to meet selling pressures).
- This correlation is a notable change from September, when a sub-20 and weakening ADX line failed to confirm the short-term lift
- There are several obvious
recovery in DEO. Note that the signal was falsely
- Last but not least we see a consistent building in On-Balance-Volume (OBV), a leading price and volume indicator that may be interpreted as "Smart Money". Just as we saw in ABX, OBV did NOT confirm the pre-October run-up in DEO shares, and I note
current declines are reflecting recent consolidation in the stock as bears give up their tough
is acceptable in this case as triangle's are precursors
giving further support to the ascending triangle interpretation,
- More notably, a close
- Above logic may imply ...
-
$DGE - Diageo (LSE) - Possible buyLooking at a potential entry on Diageo.
Price looking oversold on the RSI, strong volume on todays engulfing bar from the lower band.
Although, some negative news re FX conversion rates it is a insignificant amount in relation to the total revenue.
I want to see break above todays high to enter.
TP1: 2720
TP2: 2840
SL: 2580
Closed our current holdings of Diago waiting on the pivot pointsAfter closing out our current CFD positions in a fairly good green for the week the charts are showing a retractment is in order and the Stochtastics are showing a very over bought on the daily chart.
Diageo... Viva Tequilla Bull
Based on technicals Diageo looks to move long back into the daily trend.
Diageo will pay $700 million up front for four-year-old Casamigos Spirits, co-founded by Hollywood star George Clooney and two of his friends. Who doesn't like tequilla or Clooney? Worst case scenario.... yet another celebrity pump and dump.
DISCLAIMER:
This is where I practice ideas and work on my trading techniques. Please note I am only providing my own trading information for insight to my trading techniques, you should do your own due diligence and not take this information as a trade signal. Trade at your own risk.
Hoast of indications for a potential rise in Diageo.Despite the recent rally in the FTSE 100, Diageo has lagged the market. However, potential buyers may come in around 1757 as this is:
1 -the base of the tram line I have drawn in. Tramlines offer great low risk entries and you can often anticipate where the price will bounce by locating a trend line and then drawing a parallel one through the lowest low like I have here around 1700.
2 - the 1757 area has been a level of support in the past-see olive circles
3 - the 1757 area completes an A-B-C corrective wave where A and BC are equal in length
4 - the Stochastics are oversold and showing a little divergence
Target of 1950-2000 depending on market structure up to this point.
Stop at 1720 for a low risk trade.
This is just an opinion, not a trading tip. Lets see what happens!
DEO, NYSE due for meanreversion LONGDiageo Plc had a nice gap down 2 January that moved the stock into oversold territory based on Quant based approach that I have used for a very long time. I have traded US stocks under certain criteria with live recommendations since last January 2014 and until late autumn with fantastic results that I will publish here shortly. The approach is simple and based on testing from both ETFs and especially SPY back many years to get the quant basis for this setups. I will also publish these results shortly.
Today this stock is one of the promising candidates. I recommend going long on the stock primarily on the close we had on 2 january. But often you will get even better setups going in the following day. You can either enter market (regardless if price gaps up or down or opens at Fridays close.
I have tracked the results with best results going long the following day of the signal on daily setup with either enter at yesterdays close or better or preferably at a limit 1% below the setup bar.
Stop and target is dynamic. That means I have both stoploss and target at CLOSE above 5 MA on daily. If you would like a faster partial exit you have multiple choices for that. I suggest if you want to use partial exit to look for exit on close above 50 CRSI or 70 CRSI. My prior setups that I have logged have all been based on exit on 5 MA.
I have already posted several of these setups already. I have to add that some of the earlier published setups have not has as strict filter setups as this one that is based on my proven system.
SETUP:
Long at 112,24 or better OR Limit 1% below 112,24
Stop 5 MA
Target 5 MA ( Optional: Partial exit @close above 50 CRSI or 70 CRSI)
REACHED TARGET: Another winner 8 January.
