Westpac $1.72?

Well i have spent the majority of my Saturday reading Gann books and playing with cycles on some of my charts...Maybe doesn't sounds overly exciting but once i begin and then i start playing with some theories and applying them to the stocks i trade i just can't put it down. The way it works is really amazing, Pure mathmatics at its best.

Here i have done a Chart on WBC that shows a 172 day cycle and a $1.72 price cycle. Basically the all time low was $1.72 so you can square this out and project the degrees forward in time as a cycle to find pressure points in the market. There are many teachings and some work better on one stock than another and i will try demonstrate this with more charts at a later date :)

Anyway i have started with the banks but i will just show you WBC for now.

Basically the green dotted lines indicate a 50% move of a price cycle, as we can see the top was almost perfectly aligned with this price level before she fell over. When april turn dates came for the market and we notice where the prices are on the cycle charts so for example WBC struggling to break the $28.38 level and the market looking toppy this i feel would be a low risk short and would be happy giving a sell recommendation.

My thoughts are still bearish and i would expect to see the price come down and maybe begin to turn up around the turn date as indicated by the black line in june.

I will be watching closely as WBC goes ex div monday and should maybe run down further. Anywhere near the $20.64 area i would be looking maybe for a long, espicially if it is near to the turn or another cycle date. Hope this analysis helps people try understand some of Gann's teachings, There are many other techniques that can be applied to WBC and the other banks and i will show those in more detail in the coming weeks :)