QCOM
Managing the Trade
In the original GET manual there is a section titled, Applying Technical Analysis. Within that, there is a nicely done section on Wave Measurement & Ratios. It provides a concise statistical guidance for managing these trades. Essentially, any retracement of more then 62% of the impulse wave makes the entire analysis suspect.
QCOM made what appears to be a Wave 4 low at 136. It closed Friday at 160. Thus, any retracement more then 15 points of that 24 point impulse wave, any break of 145, would make the Type #1 trade analysis, along with it's profit targets, suspect. Coincidentally (or not), that level is about where the very short-term regression channels up from the 136 low would also appear to be broken.
Accordingly, the previous stop at 135 can be raised up to 140-145 depending on personal preferences.
By the way, I got an blue XTL bar for Friday's action, which would trigger an XTL breakout BUY at about 164 next week. Come on in, the water's fine.
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