Tuesday, December 16, 2008

Monday 15th December 2008- DO & POT.

DO- Had a strong run up in the opening minutes of trade before correcting at 9:45ET and falling into a rising wedge type of range. By 10:32ET you can make out three waves of upside (using that first run up including the gap out of Friday's close) ignoring those three spikes on the 1min chart...on the 60min, it had ran into strong pivot high resistance, made stronger by the fact that it was the trigger of a larger momentum shift out of midday on the 11th of Dec along with support/resistance highlighted with circles and gap resistance, highlighted with the arrow- between the end of Nov and beginning of Dec... Entry 72.07 with 72.40 stop. I got out with a tiny 0.23R gain just as it broke out of 10:45ET. This was because I was watching the relative strength between the indices (which were breaking down sharply) and the stock, which didn't budge...you can see the potential returns that were available...some 16R :o(

POT- Very similar type of setup. The gap forming part of the first wave, the higher timeframe (60min) resistance being formed at the highs of a larger momo shift along with congestion resistance from mid November. I'm very pleased with the analysis of this one! Entry at yellow arrow (70.40) with stop at red line (70.80). Only thing I still have to learn to do is resist taking off too much too soon as I took off more than half in that hour long range from 11:30ish until 12:30ET. My last two stages are shown with the numbers- 2 because of that whole number (69) and first target support, you can see it reacted to this by forming a consolidation and using it as resistance later in th day and,3, the first of the two larger resistance levels using the pivot highs of the prior afternoon. Loved that final exit!

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