Trade Setup: I entered based on the earnings-breakout-pullback setup. The stock, reacting to earnings, broke to new highs on heavy volume last Friday. The stock and it's sector have been in an uptrend with strong volume patterns. I bought on a pullback to the breakout point.
Stop: Below breakout point and today's low.
Target: Recent high around $45 is the initial target.
Concerns: Sector selling off with possibility of rotation. However, major support has not broke down. Still, enough of a concern to go with a smaller than normal position size.
1 comment:
I enetered this one a couple of days before you, on 4/29/08 at $41.80 for the same reasons as yourself. I had a stop at just below the bullish engulfing candle of breakout day at $40.80. I had a target of around 45. Unfortunately, I was stopped out the day you bought! I am wondering why you entered a couple of days after I did? Why did you wait? It looked like a decent prospect 2 days after the breakout so i didnt hang around. Or is my problem simply that I had the stop in the wrong place? Thanks again for a wonderful blog. Its a really fantastic help to newbies like me.
Post a Comment