Gann on Fuyu Manuacturing

I have made a new friend recently ( almos a year ) from the internet. I find this friend interesting because she has very similar interest as I and her spread is very wide. While I am more onto the learning of the Chinese Mystics,she is onto the Hindus. We have a few exchanges of culture,ranging from energy harnessing, astrology to technical analysis. I am indeed very impressed by her knowledge. As a respect to her, her nick will not be revealed for her privacy (even on the net), I will just provide with an alias Citrine.

One thing that Citrine has taught me was the use of Gann tools. I was originally not into Gann as I was already working hard using Fibonacci and Eliot waves. the problem with the techniques is that it lacks the timing...well, Fibonacci does have a time frame prediction but the time frame expand as the chart proceed further from the origin.

It took me some time to have a mild grip on Gann, with help from Citrine. In fact I find Gann application to be interesting. Gann Gridlines for instance, gives a more periodic time frame to the chart, it also gives a equi-divide on the amplitude. So it becomes easier to predict the next move. Remaining uncertainties are covered by Gann Fan.

I have a little difficulties at first due to my in-familiarity to the Gann parameters but through a little bit of hard work, I manage to grasp a little more of the basic.



Fig 1 Fuyu Manufacturing Weekly

Fig 1 shows the Fuyu Mfg weekly chart which I have applied the Gann Gridlines and the Gann Fan. It shows that Fuyu at a cross road on the negative gredient of the Gann Grid. The grid line as I see acts as the resistance of the stock. However, if Fuyu is strong enough, it will break through and move up-ward. In this case, I tends to follow the later this round.

I was monitoring Fuyu for 2 days and noted that there has not been any successful trade, a huge disagreement between the buyers and sellers because a huge gap between the 2 prices. One interesting thing is that sellers do not agree to sell. Evidence of this is that the price trending towards the seller. The good thing is that we should see a break upward this week, the bad is that you have to take higher risk by moving towards the seller.

The low for Fuyu is 0.04 so I guess this is the support line, while the next level of resistance is 0.11. Base on the pattern it is attempting, Fuyu is likely to create a saucer base. I guess it may take some time for this stock
to climb. But short term wise we might just see 0.15. I will put a stop loss at 0.065 should I make a purchase.