We got two of the upside targets that were IN PLAY in SLW in mid-July (37.43 and 40.015), but the stock went into a serious tank to the downside after that.
This RSI chart has gotten back into synchronicity since the early August Smackdown in the stock, though, and was poised to kick higher if SLW could rally, but yesterday's open looked nasty.
SLW opened down hard and took out the horizontal support levels (the white arrow below the two lower horizontal white lines). UGH. But, hang about...the stock reversed to the upside and took out the late Wednesday afternoon high (yellow arrow)! Hmm-mm...
SLW then sold off to the middle horizontal line (orange arrow), then rallied to a new high on the session! Notice how the story was unfolding at this point. That looked like a classic shakeout of The Bulls, causing them to sell into the early weakness and it set up a nice short squeeze of The Bears if it could continue to rally. I bought 5,000 shares at 37.21, just above the late Wednesday high, then sold into the rally at 37.65 and watched to see how trading progressed.
I'm fond of these "nested" patterns (the little yellow Symmetrical Triangle within the channel) and am especially fond of successful retests of breakouts (the white arrow), which validates the top trendline (former resistance) as support. The breakout put a target of 38.18 IN PLAY.
37.78 - high of the pattern
37.21 - low of the pattern
37.78 - 37.21 = 0.57 points of upside on the breakout above 37.61.
37.61 + 0.57 = Target: 38.18 IN PLAY
I got long again in the channel, at 37.42, and sold at 38.16, heading into the target of 38.18. SLW did much better that, rallying to a high of 38.78 on the session before easing off for a close of 38.02
Since reversing higher off the narrowed Kumo (Cloud) on August 9 on a big white candle, SLW has remained above the Kumo, or very near the top of the Kumo (Cloud), in bullish territory. It needs to take out resistance in the low-to-mid 40.00's
I played FCX a couple of times yesterday, too.
Gain on SLW: $5,850
Gain on FCX: $1,150
Gain on the session: $7,000
2 comments:
You are one hot tamale :-). Wish I could do what you do!!
Mary
Thanks, Mary. Beyond the TA, it's always tough to stay disciplined. SLW and FCX track real well with all of the patterns that they form, so I like playing them, especially when they form multiple patterns or "nested" patterns, and when they validate support or resistance, like SLW did at the arrow in the chart, when it validated the top of the pattern as support. Those tend to be very good percentage plays. I get real tempted to stay beyond the target, but I try hard to stick with the discipline of "taking profits when targets get MADE."
I very much appreciate your introducing me to SLW last spring. I had never played it before you mentioned it. Thank you! Hope that you're having a great weekend.
Post a Comment