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MYER HOLDINGS - THE WRONG TIME TO BUY

I have received some requests for my views on one of Australia's largest retail stocks, Myer Holdings (ASX code: MYR).  In particular, whether the $1.40 level was an appropriate place to buy.

Based on my opinion of WD Gann theory, there were a number of red flags indicating why $1.40-$1.45 was not a smart place to enter a long trade on this stock.

 

MYR - 10 Sep 2016

click to enlarge image

In the chart above, you an clearly see that MYR has been trading in a clearly defined bear channel over the last 3 years.  The recent move toward $1.46, simply retested the upper bound of this trend channel, and was obviously due for a correction.

Confirming this analysis were equal expansions of price, culminating in a $1.45 price target.  Timing indicators too suggested that the stock was due for a retrace, with a significant WD Gann time frame of 45 weeks and 47 weeks repeating themselves at the recent top.

These are all lessons which we describe in detail in my book Trading with the Time Factor, and the lessons described could have easily indicated to you why buying at $1.40 had limited upside.

You can purchase a copy of the course for as little as $295 by clicking here.

For me, I would like to see a clean break of the bear channel trend lines before getting bullish on MYR as a longer term stock.  A newly defined short term bull channel (see chart below) will help you identify when to buy and I think $1.15 will be a better place to look at buying the stock.

MYR - 10 Sep 2016 2

click to enlarge chart

Until next time...

 

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Sunday, 23 February 2020

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