Ka-Ching! Well, Traders, I pulled the plug on CHL this morning at $49.25. To be frank, I got lucky. I felt that a pullback was near, and today's premarket confirmed my suspicion as the stock was down $2.15. It ended up rallying a little bit before a HUGE selloff probably spurred on by profit-taking. Check out the volume!
You will also note the prominent "Evening Star" candle formation, which I have highlighted in yellow. this signifies a short-term Bearish Reversal, which is confirmed by the MACD and STO both falling.
Anyway, let's keep this little baby in our back pocket ready to buy again once it bounces. At this point, we may see it bounce at the $45 level, which was the top of the Ascending Triangle formation. Let's let the MACD and STO come back to us, be patient, and strike once the stock comes back to us.Happy Trading!
Well Traders, just wanted to check in on CHL, a trade I am currently in.The stock has made a nice run up and today, broke through the $45 resistance to finish at $45.37 with a smooth-top candlestick. The smooth top indicates that the stock finished at the high of the day, meaning there is probably more upside to this stock.I do see the STO entering "overbought" territory, and MACD is in the black, meaning at some point soon, I can expect the stock to show some weakness and begin to fall. I'll just have to wait and see how that pans out.Have a great weekend!Happy Trading!
Well traders, I pulled the plug on CROX today for a nice 8% profit in about 3 weeks. The stock had a really nice run up to resistance today, then the bottom fell out, over a $2 reversal. That, as well as the MACD and STO rolling over indicated to me that it was probably time to get out...for now. Here is the chart:
CROX
As I mentioned yesterday, i was really hoping the Cup and Handle pattern would complete, and it may still, but I had some nice profits on the table and I didn't want to see them vanish due to the shorts and other profit takers, so I got out. I expect the stock to continue to fall to support at which time, I will get back in and ride up the next Bull run. You can see the STO and MACD were giving me weakness signals.
CHL is something I have been watching for some time and it finally had a decent pullback with a bounce, which is why I got in today. Here is the chart:
CHL
You'll see the nice signal the STO gives. This hit support yesterday and bounced today. This play has two distinct possibilities for profits. The first, is to hit resistance at $45 and call it a day. Even better though, this is actually forming an Ascending Triangle which by my calculations, is good for a $8-$9 run if it breaks out above the $45 resistance. So, I am playing this as a quick pop to $45 with the hopes for more. My stop-loss is 2% below yesterday's low and I am only risking 1% of my total portfolio, so the risk/reward ratio is decent to excellent should I get the second target. If I see weakness at resistance and it begins to fall, I'll sell off, wait for the next bounce and try for the breakout again.
Happy Trading!
Ka-Ching! Well, Traders, I pulled the plug on CHL this morning at $49.25. To be frank, I got lucky. I felt that a pullback was near, and today's premarket confirmed my suspicion as the stock was down $2.15. It ended up rallying a little bit before a HUGE selloff probably spurred on by profit-taking. Check out the volume!
