A REVIEW: Back on 10/18, I provided an analysis on GT.
>>> Since the market has been trading down the last couple of weeks, long set ups are scarce. I would be looking for reversal plays in the days ahead.
One reversal set up I currently see is GT.
The Stochastic for GT is showing very oversold. In conjunction with this indicator, we see a high volume bullish engulfing pattern on Friday. Bullish engulfing patterns forming in an established down trend, are some of your better reversal patterns. Add to this, the price closed up above the 200 day simple moving average and you have the makings of a decent intermediate term buy set up.
We want to be sure the momentum can continue so the buy point is just above Friday's high of the day. I think $9.75 is the buy point. I would set my stop just below the low of the day on Friday, I would say around $9.16.
The stop in this case is very important because if the price closes below the 200 day moving average, you have a break out failure and you don't want to ride this issue down if it fails.
stockcharts.com[h,a]daclyiay[d20040517,20041017][pb200!f][vc60][iu...
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It took a couple of weeks to do something but, I sold the open on GT today for a 14% profit over the last 2 weeks.
The rule is to sell the news and today's pop was news related.
I will look for GT to pull back (hopefully) and look for another buy set up.
stockcharts.com[h,a]daclyiay[d20040605,20041105][pb50!b200!f][vc60][iut!Lah10,30,5!Lc20]&pref=G
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