7/18 Wednesday Morning: Got Triggered
$30 is solid support.
Bounced from it last late May 2012 and we had about $3 move. And that’s what we are looking for here.
4 days ago, we closed with Long Legged Doji and with next day’s close with form a Morning Star Reversal pattern (combining all three candles).
3 days ago, just a spinning top = nothing significant, $ADBE figuring out if it indeed wants to reverse.
Yesterday= Another great strength to this bottom reversal move, closed with Bullish Hammer.
Today= Combining two candles, we formed 1 White Soldier (not text book but pattern is there), it will also pass for Bullish Engulfing pattern.
This morning=sure enough, we broke out and I got triggered bullish.
My target is about $32.70. Let’s look at some indicators (I don’t trade off of indicators, Indicators are only used as a confirmation/affirnation tool for the analysis I’ve done with chart patterns, trends, candle sticks, moving averages but never trade off of indicators)
Stochastic= Over-bought territory and crossing (good bullish indication but not fully confirmed)
RSI= bouncing off of over bough territory and GREAT confirmation for bullishness
MACD= Crossing (good bullish indication but not fully confirmed)
BBands= both bands are closing up which is good sign that previous short bearish trend is finished and is reversing. Ultimately we want it to close above that middle line (20 SMA) to go further upwards.
Overall: Not a bad trade here. Plus with the Market Index have some room to go bullish, we probably can able to reach the target here as well. Let me know your thoughts
7/19 Thursday: BULLISH!
LOOKS GREAT TODAY!
Look at that angle on that thing! Almost 90 Degrees boy!
No problem we are going to hit our target probably tomorrow.
100 SMA closing in and that’s exactly where our target so no worries there.
SIDE NOTE: When moving average and a major pivot coincides like that, that pivot becomes stronger
MADC = Moving Average Convergence-Divergence.
And that’s exactly what MACD is showing us. Bullish Divergence on this thing. GIVING us great tip for this bullish move.
$ADBE bottomed out flat line however MACD is showing HIGHER LOWS. = BULLISH
STOCH looks great as well. Bouncing off of Over-sold territory and crossing.
RSI still has few more points to go.
Of course MACD with Bullish Divergence and crossing.
Its gonna be another successful trade for us. Already about 35% ROI.
7/20 Friday – After-noon: Tweezer
Looks like $32 area is acting as resistance currently. It is not strong but it has been a confluence zone for the last several months here.
My ultimate target was at around $32.50 where it lines up with 100SMA. But it looks like we got this Tweezer Reversal at current resistance.
Tweezer isn’t strong reversal but definitely a warning for us. I’ve tightened by stop to just below that Tweezer. If I get stopped out today, I will still walk out with profit so it wasn’t a bad trade after all.
But Tweezer being not a strong reversal, we could certainly just push on up tomorrow if i don’t get stopped out.
RSI has been agreeing with candle sticks. We’ve reached RSI resistance and at which point when it hits it, it tends to either pull back a little or reverses.
MACD is still bullish but approaching Zero line here soon which has been served as short-term resistance for MACD.
7/23 Monday – Gapped Down =*(
Yup we shouldve closed it last friday. We had some good indication on Friday but we ignored it. Got stopped out immediately this morning but it drained all of our gains.