Chart Analysis ~ Trading the Trend
What we have here is a good example of why it is good to do 2 things:
1. Watch trending stocks, in this case the direction is UP.
2. Trade the stocks in the direction of the trend.
So, having this said let’s analyze:In terms of tradeable event we consider it the breakout move @ 44.25, second is the setup which is the retest @44.25 after the breakout. This, as you can see is a good entry point who gain 75 cents. The Second entry point is created by the retest of the new support @45. Again bear in mind that we still think in terms of tradeble event (uptrending stock with breakouts), setup (retest of support) and entry point. This is an 1 point move till 46. The last entry point @45.30 is support line made by the first breakout after our 45 entry and the shy attempt to touch it. Looking also like a double bottom we have the entry point @ 45.30 for a .60 move.