Wednesday, April 23, 2008
Today's Trade Entry: ACH
I bought 300 shares of ACH at an average price of $43.08. I usually don't make long entries on beaten down stocks or sectors, but China stocks are due for a bounce and today's strong breakout offers the type of volume catalyst that could be good for a few points. I like the fact that price, OBV and RSI made higher lows (stochastics did not), and we have some room until we hit major resistance.
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2 comments:
You don't think $45 will be a resistance level? It looks like its reversed a few times at that level. In fact, the early Feb gap up on big volume looks really similar to this gap up, and it gapped right back down the next day. Is it the RSI and OBV indicators that make you feel it will be different this time? They looked a bit flat right before that Feb gap up/down.
Stan,
You could be right, but I think there is enough steam to get through the $45-46 area. Note that the Feb gap pulled back and the ramped up to $52. Also, the overall volume pattern is better now than in February. Volume has been light on pullbacks and today's volume classified the stock as a true breakout. Back in February, the volume on breakout did not greatly exceed the previous distribution.
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