Stock review - CLF (12/15)
I mentioned missing CLF yesterday and I just wanted to post the chart to show what a nice setup it was. Shame I didn't have the time to catch it.
Price gaps up but then falls back down to find support at the PDH at around 10am. Stocks tumbles around in no man's land till about 12pm when it hit the PDH again. So, we look to see if it again finds support or breaks through. Price breaks through and under the PDH and consolidates. There's a nice little trendline from 12-12:30 from the higher lows. The 12:30 bar not only breaks the trendline but also closes very weak right at the PDH confirming what was support is now resistance. At the same time, the DOW seemed to be running down off an overbought situation. In hindsight, this was a good time to go short on stocks but I prefer to find a good setup that pretty confirms everything instead of solely relying on the DOW.
Posts
2 comments:
00NR7,
Perfect trade! I hate missing those. In fact, I have never caught a move like that because I am too big of a puss to stay in long enough.
It looks a lot like the setups I have been studying recently with the 34 EMA on my chart.
Tyler
tyler.... I'm a bit of a puss too. You knows if I would've been able to ride it out. Although looking at the chart... if I moved my revised stop to BE after 1R I would not have been stopped out. But, anything can happen. As for the 34 ema... it actually lines up well with this trade.
Post a Comment