Free Articles

Time Trader Insights

Exclusive insights into the current trends in financial markets.

IRESS Limited - a better place to buy

Posted by on in The Time Factor
  • Font size: Larger Smaller
  • Hits: 436
  • 0 Comment
  • Print

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... 




This email address is being protected from spambots. You need JavaScript enabled to view it.

This email address is being protected from spambots. You need JavaScript enabled to view it.

Register for updates