Savills UK Investment Opportunity Analysis! (Short Term)

In the first example of analysis for the student investor challenge, I will be technically analysing Savills PLC using a Japanese candlestick chart on numerous time frames. By the end of this report, I will present how I may trade this in the next few weeks or months.

Firstly, understanding this analysis requires basic trading knowledge and fully comprehending the reasons behind the analysis requires advanced Elliott wave education. If you want to obtain the basic knowledge then please take these free courses first: https://www.4xtrading.co.uk/4x-trading-s-basic-training-course & https://www.4xtrading.co.uk/4x-trading-s-flag-pattern-course

Now, let's start off by viewing a blank daily chart of Savills (SVSL).

As I have marked on the chart, there was an important low this time last year and since then it has took off. If I now add Elliott Wave labels, we can get a better idea as to how to trade this. (click on the image to open an interactive chart with the labels)

If this labeling is correct, it would mean that Savills is likely to continue rising very soon. Now, let's look at the four hour chart in order to see how I might open a position.

Unfortunately the competition isn't running, otherwise I would've already entered this trade as the green box was just touched.

A great way for a beginner to trade this is to look for flag patterns on the 4 hour chart and trade off them. We have a full free course for these patterns which can be found here: https://www.4xtrading.co.uk/4x-trading-s-flag-pattern-course

So, what's the target?

Well, there are a few ways this could go, let's look at the possibilities.

Possibility One (not so likely):

If this is a B wave correction, the stock will rise to anywhere in between 902.50 and 934.55. After that it will reverse and continue down for around 2-3 months. I don't favor this possibility because the correction will be too deep and wave 4 often terminates at 38.4% of wave 3, which it already has, meaning it is more likely to continue up now.

Possibility Two (more likely):

So, if we instead say that the correction has already terminated, then it time for a final rally up to around 1080.00, which will complete the sequence up.

This possibility will present numerous buying opportunities along the way, which could be a great way to profit.

Conclusion

In conclusion, I have a bullish bias in the market on the whole, however in the short term another pullback could take place.

Please understand that these are just possibilities that come from my interpretation of the market using Elliott Wave analysis, Japanese candlestick patterns and a combination of other systems. Therefore, there is no guarantee that any of this will take place. Trading involves high risk and may not be suitable for all investors.

-Wian Stipp

4x Trading