I often find all manner of reference to Technical Analysis whilst reading threads, questioning certain elements, asking for advice on indicators and also requesting advice on a stock and whether it's a good time to buy, sell, hold or remain indifferent. I am the first to admit that my own TA is still in its infancy, but I do spend time on expanding my knowledge (hopefully in the right direction!).

Rather than having to ask a TA question on a particular thread, perhaps this thread could be used as a forum for TA queries and become a knowledge base. Just a thought, if there is little or no interest, the thread will sink without trace and that will be the end of that. I will personally add a few snippets to help those with less knowledge (if that's possible) to keep things rolling. There is a danger that the thread will receive countless requests for opinions on a variety of stocks and there is only so much I can do alone, therefore I would more than welcome input from other posters, no matter how rudimentary they believe their own knowledge to be, hopefully some real experts will take the time to contribute.

Reply on the way :)

maggie, EMG isn't going to be easy to predict now until the markets stabilise. I'm not sure if there is other information in the public domain that is affecting EMG other than the general turbulence, but from a TA perspective not only did the SP fall out of the short term steeper channel it has also fallen out of the shallower channel, so the trend that has been so reliable since Oct last year has been broken. It will take sometime for a new trend to establish. Until then best we can do is try and find support levels from the chart. The 200MA can provide support to a falling SP, although it is not something I especially rely on. There is also SP support at its current level from the last few months, so perhaps there may be a bounce from here. The RSI is currently sitting at 35 and over the last year EMG has rarely dipped below the 30 level so possibly the pace of the sell off may be decreasing, certainly the volume was slightly lighter today. I have had a look at some other indicators which would suggest that the SP is approaching oversold, but stocks can be oversold for quite some time.

Worse case scenario: if the current level fails there is support at roughly 20p increments all the way down to 460p. I have drawn a much shallower trendline from April 06 which would also provide support at 460p ish depending on when (if) it gets there.

Sorry I can't be more positive or more help, but from this chart I certainly wouldn't trade or invest until there is more direction from the markets generally. I could take a 50/50 gamble and say there will be a recovery tomorrow, but I have to be honest and say I can't be certain.

My own style is to look for trending stocks, with proven (as much as can be) support and resistance levels, trendlines and supporting indicators, EMG at the moment doesn't fit the bill :(

pth

Thanks again PTH for taking the time to reply I sort of thought as much myself. Apparently the Chairman 'stepped aside' announced on 27th and this is affecting the sp. Unfortunately I'm in now, will see what tomorrow brings :O(((((

M

EMG - perhaps more by luck (strong US last night) than judgement, i see sp has (conveniently) bounced straight off notional 200 dma support .... still reckon this is a good compnay and in the long(er) run for sure i don't reckon maggie will suffer at all

Just as I was climbing to the top of that building things turned blue. Would agree with your thoughts Cynic now it has to stay there. Sadly the more you loose the more you have to crawl back. Another hard lesson, should have cut losses when dipped below 600. Think I'll be dead before I get the hang of this game :o)

not really .... sp is now 560 so significantly less than 10% below your magic number ...... i think the chart looks pretty good, always assuming Dow does not start getting silly again

a good day at the ranch, capped by PRX announcing bid talks ..... let's hope Dow does not go into vertical spin and spoil it all.

very very clever peeps (like ms d) could or even will have made a bundle on the Dow this afternoon (or so they'll tell you) as it whizzes up and down in an 80 pt range ...... but all too scary and diff for an old codger like me

Me too Just recovered from emg's vertical descent, calmer but not content. Had a look at RTN again think it might be on the up. Looks as if it has bounced off the 200dma. Do you think PRX will drop again if the talks take some time?

PRX - don't think the shares will drop back at all ..... RNS mentioned talks with several parties, and imo it is unlikely that all will fall apart ..... but how much upside remains is impossible to judge ...... do you hold any?

this stock is very tightly held with NMS of only 500!
there is also a very strange protected sale today at about 98p of 185,000 shares ..... double checked that on LSE site

RTN - as you know, i am a long-standing fan of this company as well as DOM ...... though my current holdings in both are showing a loss, i am more than happy to stay with both ...... good to RTN sp poke its head above 200 dma, but there could be (quite heavy?) resistance when 25+50 dma are hit just above the current level ...... break through that, and all could be sweetness and light once more

Surprised at you, Cynic, for not spotting that dynamix is a gentleman - who ought to know better than rubbing old codgers up the wrong way :P

Well done on your Dow thingie :)

hi choccie ...... haven't had a chance to flirt with you for yonks ...... dynamix certainly ain't either a lady or a gentleman ..... (s)he behaved more like une femme d'un certain age with severe PMT and high blood alcohol!

as for Dow, that was just a little risky trade i decided upon, that i was fortunate to call right ..... though would have been righter still had i (very rashly) left it all open.

PRX is definitely my winner of the day though!

PH and others, why not leave Dyna drowned in her own vitriol.

I don't read all that is written on this thread and some bits I occasionally disagree, but that is the puzzle of TA..

But, I think the market is so volatile at the moment, that I will watch from the sidelines with 80% in cash.

You may catch a bounce of 2-5%, but guess work says there is a further retracement coming up of 5-10%.

I think this thread is interesting and the slants given enlightening. Good luck.

cynic , see where your mate was coming from re the DOW , not a risky trade at all(so long as you knew what you were doing?) - how it was derived you do not see very often but will not forget it now

Dynamix, shame on you pretending to be a girl, perhaps you wish??

Joking aside, I quite welcome alternative views, sharing of ideas re trading strategies, methodology etc. Perhaps you would like to start again but in a more informative way rather than the smart arse way in which you introduced yourself. Guess I can always catch up with you on ADVFN or elsewhere :)

Maggie, pleased you got your bounce which should mitigate the damage a little, all you have to do now is decide if you take the smaller loss or hope for better. Decisions, decisions.

pth

i know too wher M8 got his support, but the markets are so difficult that it was brave to bet on it holding .... in fact, Dow tested through it on a couple of occasions before heading north .... today has been interesting, but far too scary for me ..... Dow has traded on a 100 point range though here is no real logic between either its top of bottom

Peter .... did you see e- re pro-am?

Yip, Have sent you an email, more later :)

I very much fear that with this late sell off that the Dow support at 13255 will be broken and perhaps quite fiercely ..... very late in the day, have opened a short at 13279 and am almost sorry to say that it is now (already) quite well in the money.

at close, Dow was sitting on next hoped support at 13205 .... if that gives way, then from memory, 13200 is next stop ... feels almost traitorious, but shall leave this open o'night as it feels very much as if renewed bloodshed is on the cards .... at least this short offers mild protection against my long portfolio.

Suggest SOLA may make a good short in the morning

haha it was cynic who kept suggesting I was!

looks like your dow trade was a good falling knife catch, glad you got out when you did as it looks patchy now

been long gold (spot) today was up a bit then it came back to stop me out evens. I'm also still holding livecattle long and coffee (sept) so at least that ok

uneventful day really, onwards and upwards