[isatrader]

This looks like a massive build up in volume. However, this one has gone a long way already, ENQ.L:

A long way is an understatement. If you flip the chart and look at this like you would a Stage 2 stock, you'd think it was in the process of making a blow off top (see attached), as it's seriously extended (71%) from it's 10 week MA. Would you buy a Stage 2 stock at this point?

   

   

Heavy volume late in a parabolic down move like ENQ.L could be a sign of capitulation. Note the other energy stocks also in extreme Stage 4 declines that are also seeing heavy volume selling today. The energy short trade could be nearly over imo.

[isatrader]

For the long watchlist again today - PRG.L

   


And for the short watchlist - AGA.L, BGEO.L, POLR.L

           

[pcabc]

Heavy volume late in a parabolic down move like ENQ.L could be a sign of capitulation. Note the other energy stocks also in extreme Stage 4 declines that are also seeing heavy volume selling today. The energy short trade could be nearly over imo.

Interesting to see how this pans out. At some point I suppose there are only the most dogged buy and holders left, the ones that would rather wait it out no matter what.

[isatrader]

For the long UK watchlist today - SVCA.L

   


And for the short watchlist - OPAY.L

   

[isatrader]

For the UK long watchlist today - JLF.L, IMG.L (Stage 1), ELTA.L, SDY.L, POLY.L (Stage 1)

                   

[isatrader]

Interesting to see how this pans out. At some point I suppose there are only the most dogged buy and holders left, the ones that would rather wait it out no matter what.

Here's a good example (although from the US market) of an energy stock with a similar chart that's now started rebounding, and has moved over 100% in two weeks. This is the kind of price action that I was warning about in the previous post, as when they are so far extended from their moving averages, you can get extreme corrections.

   

[isatrader]

Nothing particularly interesting for the UK watchlist tonight, but I did note a large amount of stocks that made pullbacks to their rising 10 week MAs, that then closed higher. So trader pullback entries might be a good place to look in the current climate.

[pcabc]

Two longs, BYG.L & GPOR.L. Disclosure, I already have a position in GPOR.L: