We’ve found two very interesting market opportunities with a high probability of larger price moves, and you have the chance to participate:
Stock market legend W.D. Gann taught us that a market would often break through on the fourth attempt. That’s exactly what European Stocks have done this week. It seems that most of the sellers at those high points have sold what they had and there is no more so-called ‘overhang’, which now gives the market a lot of room to run further. Needless to say many European investors are now investing even more in the stock market to have a natural hedge against the steadily declining EURO.
A somewhat similar situation to Europe can be observed in the Indonesian stock market. On the first chart below (going back to 2002) we see the huge run-up since 2009. But for the last 18 months this market experienced also a sideways consolidation and looks like it will break out (to the upside) anytime soon.
Looking at the same market on the next chart but using a smaller time frame we can observe a so-called ‘cup-with-a-handle’ pattern. This pattern resembles the shape of a tea cup on a chart and was described by one of our stock market experts, William O’Neil, in his famous book “How to Make Money in Stocks – A Winning System in Good Times Or Bad” (McGraw-Hill) as a timing tool.
Using the definition of Investopedia: “…This is a bullish continuation pattern where the upward trend has paused, and traded down, but will continue in an upward direction upon the completion of the pattern. This pattern can range from several months to a year, but its general form remains the same.
The cup-and-handle pattern is preceded by an upward move, which stalls and sells off. The sell-off is what forms the initial part of this pattern. After the sell-off, the market or security will basically trade flat for an extended period of time, with no clear trend. The next part of the pattern is the upward move back towards the peak of the preceding upward move. The last part of the pattern, known as the handle, is a relatively smaller downward move before the security moves higher and continues the previous trend…”.
Use meetinvest to find low valuation criteria with above average upside opportunities in both the European and Indonesian markets and don’t miss this opportunity to make a calculated investment.
Price is what you pay. Value is what you get (Warren Buffett)