we we found some good support at $111 area and we gaped up last Friday which appears to be a breakaway gap.
Last Friday we closed above our recent resistance.
So my bullish trigger is just little above upper wick from last Friday at around $117.30
The problem is the stop. Solid stop would be below of that major pivot of $111 area and below the gap but I don’t want to risk so much on this trade (as I have burned on my last $BIDU trade =***(
If I do get triggered on Monday, I would put my stop below our recent resistance. It’s not a solid resistance but then again I don’t want to risk too much on this trade. Because I feel like we’ve had very good bullish days and BIDU is catching up late and that concerns me. Also if Dow Jones starts to roll over, that also is a concern even though when Dow Jones were super bullish last few weeks, $BIDU was bearish.
Targets $124 & $134
Let’s look at my indicators.
None of these indicators are confirmed bullish except RSI. All other ones are in the verge of turning around.
BBands just below of that middle line (20 SMA) and thats where buy signal comes from. When you trade above that middle line of BBands, you buy long. (I don’t generally go with that concept but that’s one of the signals from Bollinger Bands)
Stoch is just crossing over from the oversold territory. Again not confirmed but inthe verge of turning it around. Still below 20 line so technically still not confirmed bullish. But if $BIDU continue bullish tomorrow, this will definitely be at above 20 line and with good cross up.
RSI is usually the first one to move and its already have been supporting the bullish move.
MACD is also at oversold territory and you can see that its just start to cross..
My big thing about this trade is of that breakaway gap last Friday and it appears to be true as long as we don’t fill that on Monday. We had good bullish candle after the gap and closed above our recent resistance. That’s where I am putting heavy weight on this trade. Indicators are also kind of confirming that we are in the verge of turning it around without confirmation except RSI.
9/17 Monday Morning – Bears missed me
My bullish trigger remain at the same price point though.