I love finishing exams and knowing that i dont have to go back is an even better feeling :)
Anyway i raced home from my exam to check the market to see BHP had reached $41 dollars, i was saying yesterday it would only get to maybe $40.50 so i was trying to time a good entry for a short on it. Long story short i got a bit greedy trying to milk it for a few extra cents missed the order and then it tanked so opportunity lost.
It might be a blessing in disguise as i really should be waiting for a proper confirmation. Tomorrow will be the tell tale day and i think i will be shorting it from there with a target of about $36.50
On th chart below i have indicated why i think it is over bought, the repeating range was up to $40.56 and it was $41 today, but it fell back heavily which is what i think is people opening short positions on it. So i think tomorrow it will open down and maybe form an island pattern as indicated with the green circles (islands are a candle stick pattern that are a strong trend reversal pattern, Along with some of the other indicators that are looking over bought, All the stochastics except for the daily are and if they turn down tomorrow that will be a very strong sign as it is creating a divergance which is the higher highs on the stock price but the indicator only made a lower high so showing losing momentum and should crash. which is what i want it to do if i am shorting it.
Here is that chart if i do the trade tomorrow i will let you guys know and show you why and where i have my stops :)
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