Tuesday, February 19, 2008

Copper Stocks Breaking Out

Some of my best trades have come when I was wrong about a position and decided to go the other way with it. I am hoping today's trade ends up falling into this category.

I was short PCU as it had presented itself as a good short candidate. I was stopped out on today's breakout, and have now reversed my position, going long 50 shares.

Today's breakout over resistance makes it clear that this stock is now a long candidate. Besides the breakout, we also see recent accumulation and a positive RSI divergence. I am not sure if the stock has truly bottomed, so this is a short term long play. I may add to the position on a pullback to the breakout point.

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