Monday, December 21, 2015

AEL - Made a return of 4.33% nett of costs in 6 days

The 1st post on AEL was made on the 10th, and a buy between 22.00 and 22.50 was discussed. The basis for this recommendation was  a SWING LOW Strategy. The secret of Technical Analysis is that there are many strategies to choose from, but you have to decide on the fewest to form your Trade Setup. Otherwise you get confused so much that finally your efforts will be futile. No Technical Analyst would agree with another, it can never happen. Because if all agree, then all either will only buy or sell. If all want to buy then who will sell?
 Buying below 22.50 wasn't impossible during the next few days, since recommendation before it settled over 23.00. Thereafter it went up and re-tested the resistance of 24.00. On this day any one could have sold at 23.80 and 23.90 without an issue. Selling it at 23.90 would have given a return of 4.33% nett of cost, in 6 days. As the market is fragile, and Negative sentiments are all over, taking this opportunity was rewarding. But the trend for AEL is more bullish. Therefore we will see a break out of 24.00 at some point. But 25.00 looks a strong area of resistance to be broken for a move higher.

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