Even though I’m having a holiday this week, I managed to find a moment to check out some US equity charts and there were quite a few delicious looking ones that were just too good to keep to myself.
My Trading Style, and Other Stuff You Need To Know
- I trade these charts while I’m asleep, so needless to say these ideas are not day-trading ideas. They are longer term, with a view from a day if it goes instantly pear-shaped, to infinity and beyond! These trades are not food-on-the-table trades, but have the objective of becoming more like medium term investments.
- I’m looking to ride trends. Most often I won’t set a profit target, but use a trailing stop instead.
- I’m purely technical – and even that is debatable since I don’t use indicators – and most often I won’t know or care what the company in question does.
- I’m happy to use both daily and weekly charts to trade off, depending on the personality of the stock. Charts will mostly be weekly.
- I usually start with quite a small position, then pyramid in quite aggressively once the price moves in my favour.
- Any stops ideas mentioned are for my own benefit, as I would feel negligent if I didn’t mention some kind of risk management. They may or may not suit your style of trading.
This Weeks Charts…
What I love – $AMGN has closed at its highest weekly high ever, and during the week traded at its all time high, although it closed the week just below. It has been showing significant strength since June and has just broken out from short-term consolidation which I love because it’s not too over-extended. Because new highs tend to get faded, I like to put an order in above the previous high to make sure I’m buying into continuing strength so I’ll be looking for an entry around $88, with a stop around $80.
What I love about this one is that it broke out to an all time high in July, and has been consolidating since then. It has just closed at its highest weekly close which is right at the upper limit if its range. I’ll be looking for a breakout entry, once again setting my order above the current market at $50, with a stop under the range at $45.
$PCN is an interesting chart. It’s been in a sideways range forever, other than a rather large blip in 2008 but has recently broken out of its lethargy and punched new highs. Right now probably isn’t the ideal entry, but a pull-back to $18.50 would be ideal. The risk of course is that it never pulls back, gives me the finger and roars ahead just to spite me – in which case I’d like to enter around $19.40. Stops would be around $17.75.
This is one of my favourite charts this week – on the weekly chart you can see it’s been in a long-term up-trend which usually isn’t something I’d look at, but what grabbed me about this is that after a pretty deep correction it has gapped higher and has hit new all time highs, plus it closed the week well above the $100 mark which it had struggled to do previously. My entry will be $104.50, with a stop at $94.50.
Have a great trading week
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