Yesterday CLF formed a NR7, inside bar within the tail of the previous bar on the daily chart. It was green on green and on very low volume. This have a high probability of an expansion move coming soon. CLF was on my focus list today. It gapped up above R2 today, moved sideways to reach the rising 5 EMA. 3rd bar closed very strong. Entered on the 3rd bar. It consolidated midway where I could have added to my position. Sold at $35.60.
This was yesterday's trade. Found resistance from all the EMA's. In this setup, stocks move up against the EMA's. Candles become narrower forming a bear flag. Best entry is on the break of the trendline.
2 comments:
nice trades ... i was long on CLF as well on a break of the third bar high ... what made you take profit at 35,60???
timo4sho:
I was expecting some resistance and retracement at Sept. high which was around that price level. I had a good profit and did not want to wait for the retracement and sold entire position a little lower the 13th bar low was taken out.
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