I bought 400 shares of RIO at $32.25. I've been waiting for a decent entry in a steel/metal stock for quite some time now, and finally found a decent pullback. I placed my stop at $30.90, just under the last breakout. Note the smaller position size. The fact that the stock has been on such a tear required me to take a reduced position.
4 comments:
From your post (and from looking of the chart) you are long in RIO but you said that your stop is 33,90 and buy price 32,25. You are maybe short on this posiotion or you just have a typo on the blog or you put your stop above the buy price or I got something wrong. ;)
BTW vary good blog
Sorry for the typo. The stop was supposed to read "$30.90", not "$33.90". I went back and fixed it. Thanks for pointing that out.
Have you looked at the negative divergence at RSI and also MACD pointing down on EWZ? If I am correct what is the reason to overlook at it?
Thanks! :)
If you trade off pullbacks, it's very likely you're going to trade off lower MACD readings. The fact that the stock is bouncing off the 50 day MA and the money flowing into the stock has been positive leads me to believe that the stock has room to go higher.
I did notice the negative divergence, which is why I am using a tight stop.
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