Comments on: Bearish stock chart pattern in Energy sector

By: fornls

fornls — Tue, 10 Feb 2009 19:52:46 +0000

Its chances of moving in either direction are quite high. We should not look only in the long term trend of down direction. The stock pattern shows that it made repetitively a support near the same levels for three times. But the resistance levels after that have been consistently falling.

Now this means, that there is less potential to make profit if it breaks down, but more potential if it dares to cross the falling resistance level. Just after crossing, catch it to buy once it bounces off the resistance level to move upwards.

I am not sure as of today where the stock might be!

By: richk

richk — Wed, 31 Dec 2008 15:11:12 +0000

I closed this trade as it has not moved in my direction during these holiday days. But chart pattern is still valid .

By: Coudy

Coudy — Thu, 25 Dec 2008 19:07:08 +0000

Thank you Richard,

may I ask you where is your stop and profit taking point placed?

Coudy

By: richk

richk — Wed, 24 Dec 2008 13:46:37 +0000

Hi Coudy, regarding this level. I wanted to see that this level holds. Therefore I did not entered short after reaching 50 USD. But I have waited for some bearish candlestick confirming that this resistance level holds.
That means that I entered this short trade not in 50USD level but lower, somewhere under 47.

By: Coudy

Coudy — Mon, 22 Dec 2008 18:39:40 +0000

Hello Richard,

if you would short xle @50 USD, would you

a) set order sell limit @ 50 USD

b) or will you wait till the price is above 50 USD and then set order sell @ 50 as a proof, that the price goes you way?

Thank you for info.

Coudy