The typical opportunistic trade gone bad. I saw this as a good opportunity since MACD is turning down but believe that just like the current trend it will stay above the 22 day moving average.
My Entry was at 88.5 with a profit target of 95-96 for a 7% profit.
The stock never did move any higher than the price i bought it. Anticipating a correction could be underway on the weekly charts for the broad market, i made the decision to close this trade at 85 for a 3.41% loss.
Interestingly it is at the bottom of the channel. This trade decision might come back to haunt me.
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sgbluechip
Thursday 20th of August 2009
Hi Drizzt, sorry a bit off topic here. Could you send me an email to [email protected]? I have an advertising company willing to place an advert on your blog. Fees will be paid upfront. Do let me know if you are keen
Drizzt
Wednesday 19th of August 2009
The norm is that you would expect that the moving average to hold rather than the breadth indicators. judging by the strength of the market, the upside have greater strength then the downside. Unfortunately the ma did not managed to hold.
Collin
Wednesday 19th of August 2009
Why do you buy when MACD is turning down? I would wait until MACD managed to cross signal line below or on the 0 value.
Cheers.