FTSE100 - Was Fridays Doji a reversal signal?

Last Friday (23rd September 2011), the FTSE100 created a 'Doji' - a well known technical analysis signal - see video below...



This could be either:

1. A reversal indicator
2. A false signal 

Let us know what you think?
 

Carclo (290p) - Breaking Out?

Carclo looks to be breaking out from its downtrend over the past three days (see graph below)...

From the TA point of view, bullish points are:

• Strong OBV
• Buy signals on Stochastic & MACD indicators
• RSI picking up nicely
• Closed above the 200 day moving average

Elsewhere, positive news includes:

• Recent RNS (12th August 2011) very positive re. CIT expected to be ready at end of September
• Microsoft getting interested (presentation: 19th September 2011)!
• Positive AGM Statement (16th September 2011)

Worth taking a closer look?

Let us know what you think!

Landkom International - still waiting for answers!

Been trying to contact the Landkom International FD (John Mapplebeck) today. He hasn't returned my call, so unable to shed light on the mystery about the RNS (7th September 2011) - re. the figures that don't add up - see diy-investors.com videocast for details.

Will provide an update when I hear...

Regards, Mick.

Havelock Europa creeping up (SP=15.88p)

Havelock Europa seems to have weathered the recent financial turmoil reasonably well. Our latest views were posted out to diy-investors members last week, see research HERE.

The shareprice graph has a nice shape to it (see below)...

The following points are worth noting:

• Very low PSR (0.06)
• Rising 200 day moving average (shareprice turned up just above this!)
• Strengthening on-balance-volume (OBV)
• Buy signal on the MACD indicator
• Rising relative strength - but not overbought

I'm also wondering if the rise of the 'new' Academies, controlling their own revenue and formula funding, will help the schools fit-out side of the business. This coupled with increased retail fit-out activity and the POS angle, may bring a turnaround.

Let us know what you think, by e-mailing us at feedback@diy-investors.com (or post a message here).

The answer is a resounding "Down"!

The Dow Jones Industrial Average closed tonight at 10,811 (down by 634 points or 5.54%) - answering the question that I had posed on 3rd August. See below...

Checkout the full story at MarketWatch

We could be in for an interesting day on the LSE tomorrow!

Which way for the Dow?

The trading session for the Dow Jones Industrial Average today will be watched very closely! At the close last night, the DJIA has dropped by 265.88 points - a drop of 2.19%. It had also closed below the 200 day moving average - raising a question in my mind about which way will it go? See below...

You will see that, in the recent past, the DJIA has shown a tendency to bounce back within a few trading sessions of having closed below the 200 day m.a. (see Summer 2010 for examples of this). Also, I've noticed that the common 2-day reversal pattern (Hi-Lo, Lo-Hi) featured in March this year (see the L.H. circle on the graph above).

Today, I believe there will be a clear and decisive outcome. Either another 2-day reversal (mirroring March) or a decisive break even lower. Which will it be?

Well, logically, you might think that with the US politicians getting their act together at the 11th hour - it will indeed turn and start a new uptrend. The bears, on the other hand, will argue that there are a lot of pointers to a continuing downtrend - not least of which is the sheer size of the budget deficit.

For my part, I'm not going to predict or even guess - but I will be watching and ready to take action (within my US trading account).

What do you think? Will the DJIA finish up or down tonight?

Real Good Food Group (AIM: RGD, SP=68.5p) - Repeating Pattern?

Checking Sharescope this evening, I've noticed that Real Good Food Group (AIM: RGD) appears to have broken above the resistance line, marking the lower highs of recent weeks. Could it be that it will repeat the pattern of the period between 19th May and 3rd June? During that time, the shareprice rose by about 50% in a few days. Looking at the graph (see below), it might be about to repeat the same pattern.

The 8 day (fast) ADX appears to be giving a buy signal. The only slightly worrying aspect is the fact that the shareprice is well above the current 200 day moving average. Is this a true breakout or a false one? Only time will tell. Will RGD go up again in the next two or three weeks or back down towards the 200 day moving average? What do you think?