top of page
  • Lester Davids

Signals From The Tactical Trading Guide: Northam Platinum As An Example

Does anyone know where Northam Platinum found support yesterday?


The intraday low was 13023c.


Okay, so what was significant about this level?


This was also the 8-day exponential moving average (EMA), which was a re-accumulation range according to yesterday's pre-market Tactical Trading Guide.


Having studied the price action for years, it appears, to my eye, that the 8-day EMA is a key short term moving average.


In fact, it may also be that institutional traders and investors also have this plugged into their models as a level to buy and sell against. I could be wrong, but the price almost always has a tendency to respect the 8 day EMA.


Consider yesterday's chart of Northam Platinum below (with the pre-market reading). The previous day it printed a huge green candle, then came back to re-test the 8-EMA.


If you are a short term, active trader who looks for specific levels to buy/sell against, ask yourself where the 8-day EMA is.


Is it sloping up?


Is it sloping down?


And, what and how is the price action around it?


The Tactical Trading Guide was useful alert traders to the opportunity.


It's automated which means that it broadens the opportunity set.


Not only was the Tactical Trading Guide useful yesterday, but it also helped traders identified the buy/long side opportunity and avoid the downside by warning against entering. In fact, it alerted us to a short/sell.


I'm looking at the major turning points which is often where the best reward-to-risks emerge.


Consider the recent top (11 & 12 April), which alerted to the risk and suggested a short/sell.


The chart marking the said dates as well as both time-stamped readings are shown below.





Extending my lookback period, the Tactical Trading Guide also alert to the reward-to-risk becoming attractive for a buy/long position (see chart above for the 04 March marking as well as the time-stamped reading below).



Clients of Unum Capital are recipients of this data as well as other research items that help to enhance their decision making process.


To trade, or open a new account, contact the Unum Capital Trading Desk:

E-mail: tradingdesk@unum.co.za | Call: 011 384 2923


Lester Davids

Analyst: Unum Capital

26 views0 comments

Comments


bottom of page