ANR gapped down on the open and shortly after swooned towards recent lows. It promptly reversed after tagging $39.50 and then carved out a a choppy handle as part of a C&H pattern. My target was 100% Fibonacci extension from the low of the cup to the base of the handle. Some may argue that the base of the handle is in line with ORH, in which case I entered on a base break within the bigger base.Price stalled just 15 cents shy of the target after filling the opening gap. I took a partial and watched price retrace sharply. I moved my stop to the reaction low and waited to see what would happen. I closed the position when price reached the target and tested its all time high.
A while later, I re-entered as it became obvious that ANR wasn't finished.
I've been watching MDR for a few days, waiting for a B&B above the blue line. Finally, mid-morning it carved out 2 inside bars at the base.
10 comments:
I added you to my blogroll
Thanks Gunners and likewise.
Don't want to sound stupid but what is B&B? Thanks!
Richard,
B&B is short for Base & Break. There's a link to commonly used abbreviations under Key Posts in the side panel.
Any reason why you didn't use the shooting star high as the "clearance point" for ANR entry? Thanks!
Anon,
I was looking at previous day high, which was also all time high, as resistance.
Sorry, think I wasn't clear in my earlier question. I meant to ask why you didn't use break of 10.55am shooting bar high as entry for the C&H formation? Thanks
Anon,
I used to cover all my shadows, but now I've adjusted my entry points to have a narrower stop. I look for bases to form near whole and half dollar price points. In the case of ANR, it tested $40.50 at least twice following the reaction high from the shooting star, so I was comfortable using it as my base.
I like your blog.
I bought ANR at 40.27 as it retraced Friday 5.83% on light volume. I will keep a tight stop as this market appears to be in the process of determining the bottom.
Interesting that Citigroup downgrades coal as a group. I am buying coal - MEE,and BUCY are finishing their cups.
Thanks John,
Interesting play with ANR. I like that it bounced at the round $ number and closed at the base of its pivot point. I have it on my focus list for tomorrow along with RIMM and AKAM.
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