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Asx200

PERFECT WYCKOFF RE-ACCUMULATION - JB HI-FI (JBH:ASX)By September 2016, JB Hi-Fi was flying hitting a high of $31. Over the next 6 months the stock would pull back and have a second attempt to rally to new high's without success. This triggered a sell off down to $21.20. By June 2017 we had seen an increase in supply levels and overall increase in volume until the climax. A nice strong automatic rally from $21 saw the price reach $26. If you look closely at the volume each leg higher of the automatic rally, the volume was getting lighter. Suggesting the rally was weakening. Price completed Phase A of the re-accumulation with a secondary test. Note the volume was certainly getting less. Phase A of the process halts the downside movement of the stock. Throughout Phase B we see the volatility in the stock with swings to $30 and back to $22. What is key though is as we move through phase B, the moves to the downside and those large volume spikes are getting lighter each time. We are starting to see a transfer of stock from weak hands to strong hands. In January 2019, we see the first break of the selling climax in 18 months. Look at the lack of volume once it breaks. It's a break of a significant level yet there is no selling evident. The price jumps straight back above it and moves away from the danger area. The volume builds. We have seen our confirmed spring. Late February we retest the selling climax area, and price holds, showing strength in the stock. This is the first area of the phases that we look to take trades. It is the lowest risk area with your stop below the spring. Take notice of how the retest of the selling climax is also a retest of the supply line of the smaller downward trend channel formed in phase B. Phase C of the process is complete. Price moves away on strong demand and we are now in phase D. Now we notice that pullbacks are on very light volume. The professionals will not bring the price back down and give buyers the chance to get the price cheaper, there going to have to bid this up. We see a sign of strength as the price breaks the top of the trading range on a strong move. Price dips once more below the trading range to shake out any weak holders and phase E begins. We now have our last point of support and the stock is ready for mark up. We see a back up to the creek of only a few days and then price takes off after good news from earnings which always seems to be the case when the stock is in strong hands. We are now seeing the volume getting lighter as we move higher which isn't a bad thing as we now have strength in the background and supply has to show itself. If it doesn't the stock will continue to grind higher. If we do see supply come in in the near future, the stock may form a smaller trading range before moving higher again. The Point & Figure chart suggests that there is enough cause to move the stock to the $42 level.
ASX:JBHLong
by AussieWyckoff
ASX: Australian stocks in need of a stronger pull back.The Australian stock market (AXJO) is currently rising after a strong pull back that took place in July. This rejection happened because the market reached its All Time Highs of October 2007. Despite the rather strong selling manner in which it was conducted, we believe that this sell sequence is not over yet and a stronger correction is needed. The reason for this perspective is that the very same long term pattern on the 1W time-frame has been spotted back in 1994, when the ASX again pulled back after testing its (then) All Time High. The selling only stopped when the 1W MA200 came in for support. We are expecting a similar price action and even though the correction on 1994 was more than -20% we expect this time just the 1W MA200 to be enough to support and initiate then next long term bullish leg. Use this pattern according to your own risk tolerance and strategy but this is our approach for the right time to re-enter this market. ** If you like our free content follow our profile (www.tradingview.com) to get more daily ideas. ** Comments and likes are greatly appreciated.
ASX:XJO
by InvestingScope