>>> Dabum, isn't BRKS showing the perfect set up? Going up from resistance, stochastics, etc., all turning? <<<
Yes, it was a very nice set up. But what was your objective? A day trade? A swing trade? A long term trade?
In the time frame I choose to trade in, I would have avoided BRKS for a couple of reasons.
First is the reward to risk ratio. You didn't have very much room between yesterday's price and resistance at the 200 day moving average. The 200 is a tough nut to crack.
The other reason is that BRKS was in a steep down trend. My guess is that due to the technical damage and the steep decline, it's going to take some time to garner buying interest and may trade sideways for a while.
Here is the chart as of yesterday.
stockcharts.com[h,a]dacayiay[d20041231,20050331][pb20!b200!f][vc60][iut!Ua5,17,9!Up14,3,3]&pref=G
And today we see where the price ran smack into the 200 day moving average and pulled back significantly.
stockcharts.com[h,a]daclyiay[d20050101,20050401][pb20!b200!f][vc60][iut!La12,26,9!Lp12,3,3]&pref=G
It wasn't a very good risk vs reward or high probability play. Bottom fishing isn't a game that provides good odds when the markets are underperforming. If strong stocks can't push the market higher, the weaker ones aren't either.
If the markets were pushing out to new highs, the rising tide might lift all boats and the laggards would go along for the ride. But in this environment, you want to short stocks rising into resistance, not buy them, unless you are playing the day game.
dabum |
