We recently re-engineered our research offering, and the response from clients to our new short-term trading opportunities has been extremely positive. Whether it’s bargain hunters interested in shares which have fallen back to support, range hunters looking to trade the next up or down move or momentum lovers looking to ride a trend or a breakout, investors and traders alike have taken to our new approach with a gusto.

What I’ve noticed from my discussions with clients, however, is that many focus on a single strategy, i.e. only ranges or purely fallers. Some are only interested in taking a position in companies that are set to report results which could move the shares significantly, or those that are showing strong momentum that can be piggybacked for a short-term trade.

As a result, what I have been trying to emphasize is that the best trading opportunities often appear in multiple categories, either at the same time, or progressing from one to another. Shares that “fall sharply” after “results” can find “support” before “rebounding” to form/extend a “range”, generating “momentum” that leads to a “breakout”, adding to “momentum”, etc. etc.

Obviously the above would be a “goldmine” scenario for short-term traders. Not all shares will move seamlessly from one category to another. When opportunities present themselves, however, one trading idea extending into another, why ignore it? If you profited from the first idea, why not trade the second?

I don’t have to look back far to give a cracking example. On 7 Nov shares of UK 100 retail & food group AB Foods (Primark’s parent company) broke above 2486p resistance. The following day, they developed a full-blown momentum (+11% from Nov lows) and we highlighted both trading opportunities to our clients.

Pub operator JD Wetherspoon published a disappointing trading update on 7 Nov (our clients were prepared for it after our Week in Advance publication and personal updates from traders) and the shares fell as low as 14.4% on the day.

After the fall, the shares bounced off a long-term support and rebounded as much as 11.6%. We have highlighted the newly-formed range to clients on 8 Nov and the shares kept rising for the second day on the trot. Will they bounce off the range ceiling around 1337p, or will they break out to new all-time record highs?

Whatever happens to major UK Index blue-chip shares, Accendo Markets will keep our clients up to date with all the hottest trading strategies. You can easily gain access to our research by clicking here. Which trading opportunity will you take advantage of?

Avin Nirula, Trader, 9 November 2018