Short Term Opportunity In Compass Group PLC - SI Competition
- Wian Stipp
- Nov 5, 2017
- 2 min read
Introduction
Dear Reader,
In this post, I will be presenting significant detailed analysis of a particular stock in which, my team, 4xTrading have invested in the "Active Investor Portfolio". I will also be reviewing Norwich School's League Table.
So, the first week of the Student Investor trading challenge is over and there have already been some phenomenal profits from some of the teams. Let's have a look at the League Table for Norwich School.
Congratulations to the top 6 teams, which are all ahead of the FTSE! Anyway, now let's go over to the chart to discover a great buying opportunity that is being presented for next week.
Compass Group PLC Buying Opportunity
Before I even look at looking to trade any stock, I always look at the trend. This is the most important characteristic of technical analysis. The reason being is that even if I am wrong about my analysis later on, I have still put the probabilities in my favor, giving me a small edge in the market. So, let's have a look at the monthly chart, which will give us an overall long-term view.
Now, clearly the trend is up; This means this market is bullish. However, this chart is showing us too big of a picture. We want to look for smaller opportunities which we can hold for a few days or weeks, not months. Therefore, the daily chart is more appropriate (each candle represents a single day).
Don't be intimidated by all the labels on the chart. These are Elliott Wave labels, which are being taught during Monday lunchtimes in the Gartley Society (contact Wian Stipp or Karan Garg for more information). You don't need to know what these mean to read this article so no need to worry. What this analysis is telling us, is that it is likely for this stock to trend higher relatively sharply going into next week and that buying would not be a bad idea. A good first target to look for is 1737.40.
The 4 hour chart gives us an even more in-depth view.
There are a few ways to enter this trade, including:
- buying minor pullbacks
-buying flag pattern breakouts (my favorite)
-buying blindly (bad idea)
If you are unsure what a "flag pattern" is, then just click here to find out more.
I hope you found this analysis useful. Have a great trading week!
Wian Stipp
4xTrading
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