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IRESS Limited - a better place to buy

Posted by on in The Time Factor
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A couple of my clients have asked for me to prepare some analysis on IRESS Limited (ASX code: IRE) and to share my views on the stock.

Anyone who has a copy of my trading book Trading with the Time Factor - volume 1, will be aware that the $12.60 level on the stock is critical resistance and definitely not an area to be buying.

Not only was it a double top with a previous high formed back in May last year, but it was also an exactly repeating price move of the prevoius major range higher (see the 16.8% and 16.6% price repeats in the chart below).

IRESS - 29 May chart

click to enlarge

I think there will be better levels to enter this stock, and here is why.

 Those of you who have my course on PRICE will know that we look for 100% repeating ranges as places to take profits, and not to initiate new positions. Anyone with a good understanding of Gann theory will know this, and this is why I describe this technique at length in my volume 1 book on PRICE.

IRESS has now presented a better opportunity to get long the stock in anticipation of those double tops at $12.60 being broken. With the 50.0% midpoint in the stock coming in at around $11.70, this would be one area on my radar for a better entry price in the stock. It would have improved your entry by over 7.0% compared to buying at the top.

This is one of the reason why I go into detail about how to use PRICE as a tool to measure better entry and exit levels on your stock positions. If you can improve you entry by such a significant amount, it will add a tremendous amount of more profit in your pocket when you get the overall big swings right.

Until next time... 

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