Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MP - Market Pulse -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (1084)	8/6/2001 9:12:37 AM
From: HairBall	Respond to of 1328

Mishedlo: You asked me about BBBY and ANF a week or so ago… Message 16148791 ANF is behaving as expected at least so far…<g> See Chart 4 (Daily Semi-log) BBBY is trading in a multi-year (long-term) rising trading channel a multi-month (medium-term) rising wedge and a multi-day triangle which may provide one more move to the upside, but not a given. If I were going to trade this stock at this time I would (always) use my intraday technicals to help time my trades in conjunction with the chart formation, retrace areas and price action points illustrated on the charts linked below. Currently my intraday technicals are mixed. We could see a break down from current levels or BBBY may manage one more pop which may or may not test the resistance line of the Mar 01 wedge. With my intraday technicals mixed I am just not sure. I am taking some time off and will not be around to trade this issue. So, I'll provide some general pre trade strategies I would use, but you should formulate your own strategies to take advantage of the expected retrace. If BBBY does manage one more pop to the upside I would use it as an opportunity to go short at or above 33.50, using a break above the resistance line of the Mar 01 Rising Wedge as a stop or for a tighter stop using a half point above the recent high of 33.95. A more cautious play would be to wait for a tag and repel at the wedge resistance line or the failure of the rally. Of course that one more pop may not materialize, if we see a drop first, I would short a move below the support line of the intraday triangle using my entry point plus a point as an initial stop. (Determine your own risk tolerance level.) I would then use the retrace points on my charts and the support line of the Mar 01 Rising Wedge as possible profit points looking for bounces during the decline. I would also be looking to reenter short-positions for a continued decline to at least the 38.2% retrace area, once again using pre thought out initial stops loss points, trailing stops if the move goes as planed and exiting if stops are tagged. This price action of this issue will likely provide tradable long and short positions during the retrace I expect to occur, bouncing at "some" key retrace points, support lines and horizontal price action support areas. Note: Keep in mind, I always use my “real time” intraday multiple time frame indicators to aid me with timing my entries and exist. Find some indicators for yourself that you can use to help you determine what to do as the price action nears trend lines, retrace points and horizontal price action SRLs. If you are not sure of a trade "don't trade" or if you just feel you must but are not confident..."trade fewer shares"...minimize the risk. To view the mulit-year rising trading channel click on Chart 1 (Weekly Semi-log) To view the multi-month rising wedge click on Chart 2 (Daily Semi-log) To view the intraday to short-term triangle click on Chart 3 (130-Minute Semi-log) My QCharts can be viewed at the link below. Click on above indicated charts. lgscharts.homestead.com (Check out my Nine Trading Rules.) NOTICE: I have been having trouble with the charts corrupting when downloading to my computer with my DSL line. The uploaded charts are good, homestead is still having problems when it sends my chart files for some reason. Regards, LG Disclaimer: The above is my opinion only and I reserve the right to be wrong. Do not base any investment decision solely on any one person's views or analysis. Do your own research and take responsibility for your investment decisions.