Sunday, September 07, 2008

Trade Entry: NOV

I bought 350 shares of NOV at an average price of $60.54 (trade posted on blog Friday morning).

The Setup: Oversold Bounce. Extremely oversold stock within bearish downtrend. Stochastics extremely oversold in the 7-10 range. Price is at February-March support levels. While the lows have not been reached yet (50), the stock is so oversold that I expect some type of relief bounce soon.

Risk: Stop is in the $57-58 range. This is percentage stop, as price support at this level is loose and drops all the way down to $50. Initial target is $65, with the remaining share target at $70 and stop moved up to entry level.

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