Autochartist

By, James A. Hyerczyk AGL Energy Limited FPO (AGK.AX) broke out to the upside of a triangle chart pattern on the 240-minute chart. Not only did the equity CFD surge through a downtrending resistance level, but it also took out the December 5 swing top at 14.70 to change the main trend to up. The size of the candlestick on the breakout indicates the presence of high volatility, putting the market in a position to test the Autochartist forecast price zone at 14.91 to 15.29 over the near-term. The overall quality of the chart pattern is an average 5-bars. The initial trend indicator which looks at the strength of the trend prior to a pattern’s formation was up. Since the breakout was to the upside, this pattern is a continuation move. Its 6-bar rating suggests slightly above average strength. The uniformity rating is also 6-bars. This suggests a slightly above average amount of successful tests of support and resistance. In addition, it...

By, James A. Hyerczyk Automotive Holdings Group Limited recently ran into a wall of resistance near 1.91, triggering a gap to the downside and a subsequent break through the support line of a triangle chart pattern on the 60-minute chart. The size of the last candlestick suggests strong momentum that should lead to a near-term test of the Autochartist forecast price zone at 1.81 to 1.76. The overall quality of the chart pattern is rated 6-bars. The initial trend which measures the strength of the trend prior to the chart pattern formation is rated the maximum 10-bars. The uniformity indicator looks for equidistant tops and bottoms as well as measuring the number of successful tests of support and resistance. It is rated an average 5-bars. The clarity rating looks for price “spikes” and “gaps” that can cause a disruption in the flow of the chart pattern. This is important to traders because these patterns can repeat, adding additional risk to a trade....

by, James A. Hyerczyk Bradken Limited (BRN.AX) showed some strength late last week when it broke out over the downtrending resistance line of a flag chart pattern on the 1440-minute chart. The move is impressive because the size of the candlestick indicates there may have been some buying power behind the breakout. The overall quality rating for this chart pattern is a powerful 8-bars. The initial trend rating is the maximum 10-bars. This means that the rally leading up to the chart formation was very strong. Since the breakout was in the direction of the initial trend, Autochartist has identified this as a continuation chart pattern. The 7-bar uniformity rating indicates an above average presence of equidistant tops and bottoms. The quality indicator looks for the existence of “gaps” and “price spikes”. Its 7-bar rating means this solid chart pattern was created without much “market noise”. The flag chart pattern is a trending pattern. The almost parallel support and resistance lines held this...

by, James A. Hyerczyk After making a top at 14.79 on November 23, AGL Energy Limited (AGX.AX) broke sharply, triggering a breakout under the support line of a triangle chart pattern on the 240-minute chart. The move also penetrated the previous swing bottom at 13.96, reaffirming the downtrend and setting up the equity CFD for a test of the next support level at 13.86. A break though this price could trigger a stop-loss acceleration into the Autochartist forecast price zone defined as 13.59 to 13.59. The quality of this chart pattern is a slightly above average 6-bars. The initial trend which measures the strength of the trend prior to the chart pattern’s formation is a weak 2-bars. The solid 9-bar uniformity rating indication equidistant tops and bottoms as well as numerous successful test of support and resistance levels. The clarity indicator is rated 6-bars. This means that the chart pattern contains a slightly above average amount of “market noise”. The triangle chart pattern...

by, James A. Hyerczyk After using 91 candlesticks to form a rising wedge chart pattern on the 240-minute chart, Iluka Resources (ILU.AX) finally broke through the support line, completing the chart pattern and setting up a possible break into the Autochartist forecast zone at 14.00 to 11.55. The overall quality of the chart pattern is a solid 7-bars. The initial trend which is the strength of the trend prior to the chart pattern’s formation is an impressive 9-bars indicating a strong trend. The uniformity indicator looks for equidistant tops and bottoms as well as measuring the number of success touches of support and resistance. The strong 9-bar rating suggests the presence of at least one of these key factors. The low 4-bar clarity rating suggests the presence of “market noise” which may have been in the form of a gap or a market “spike”. The gap down along with a lengthy bearish candlestick triggered the breakdown through the support line. Before this equity...

by, James A. Hyerczyk A late session surge in Macmahon Holdings Limited (MAH.AX) triggered a breakout over the resistance line of a falling wedge chart pattern on the 240-minute chart. The move signals the start of a possible rally into the Autochartist forecast zone at .59 to .60. The overall quality of the chart pattern is a below average 4-bars. The initial trend which measures the strength of the trend prior to the chart pattern’s formation is a well-below average 2-bars. This signals a weak initial trend. The uniformity indicator is important because it measures the number of touches of the support and resistance lines. A low uniformity rating indicates few touches. It also looks for equidistant tops and bottoms. The current rating is a below average 4-bars. The clarity indicator is an above average 6-bars. This means the pattern was formed with minimal market noise, typically indicated by “spikes”. The falling wedge chart pattern is a trending pattern. It carries the characteristics...

by, James A. Hyerczyk Woolworths Limited (WOW.AX) broke out over the downtrending resistance line of a falling wedge chart pattern on the 1440-minute chart, setting up a possible rally into the Autochartist target zone at 25.15 to 26.41. The length of the chart pattern is of particular interest since a prolonged move in one direction tends to lead to stronger breakouts. The overall quality of the chart pattern is a slightly above average 6-bars. The initial trend which measures the strength of the market prior to the formation of the chart pattern is also rated 6-bars. This usually indicates a lower-grade trending market. The uniformity is only average. The chart pattern doesn’t appear to have many equidistant tops and bottoms. The most noticeable feature is the prolonged trend along the resistance line from the short-term top near 25.00. Despite a gap that was probably caused by market action rather than thin trading conditions the clarity rating measures 6-bars. The falling wedge chart pattern...

by, James A. Hyerczyk After making two successful bottoms at 2.58 and 2.67, Aquarius Platinum Limited (AQP.AX) broke out to the upside of a triangle chart pattern on the 1440-minute chart. The gap and close above the resistance line indicates strong buying power which could drive this market into the Autochartist target zone at 3.38 to 4.00 over the near-term. The quality of this chart pattern is a below average 4-bars. The initial trend which measures the strength of the market prior to the pattern’s formation is a solid 7-bars. The number of gaps and spikes during the recent decline has led to a low 2-bar clarity rating. This also means that Autochartist has detected the presence of trading “noise”. The length of the pattern should also be noted. A breakout of a 72-candlestick pattern is a strong sign that the trend has or is ready to turn up. The triangle chart pattern is a non-trending pattern. The compression of the support and...

by, James A. Hyerczyk OM Holdings Limited (OMH.AX) closed over the resistance line of a falling wedge chart pattern on the daily chart, signaling the start of a possible rally into the Autochartist target zone at .66 to .73. After bottoming in early October and consolidating for several weeks, the breakout over resistance is a strong sign that buyers have committed to the long side. This should help generate the upside momentum this equity CFD needs to reach the Autochartist forecast area. The overall quality of this chart pattern is an average 5-bars. The initial trend which was up prior to the pattern’s formation is a slightly below average 4-bars. The uniformity rating looks for equidistant tops and bottoms. It is currently rated 3-bars which is not a surprise since the market didn’t exhibit very many meaningful price swings during the pattern’s formation. The 8-bar clarity rating indicates that the chart pattern is clearly defined without any noticeable trading “noise”. The close above...

by, James A. Hyerczyk SembMar (S51.SI) formed a 3-Point Extension Fibonacci pattern indicating a possible short-term top in the market. Based on the rally from Point B to Point C, Autochartist is forecasting a possible break into a series of Fibonacci price ratios. When compared to a 3-Point Retracement Fibonacci pattern, the 3-Point Extension differs because Point C is higher than Point A. With this chart pattern, the main trend is up since Point C took out Point A. In addition, there is precise price and time symmetry between the break from Point A to Point B and the rally from Point B to Point C. Once Point C is identified, the rally usually stops, setting up the forecast for a break into a series of Fibonacci levels ranging from .382 to 1.618. The break from Point A to Point B was 3.58 to 3.05 or .53. Multiplied by 1.618, .53 equals .86. Adding .86 to the bottom at 3.05 projected a top...