Thursday, October 30, 2008

Cup & Handle - Foster Wheeler Ltd. (Public, NASDAQ:FWLT)


FWLT gapped up and retraced back to yesterday's high which held as support on two tests. After pushing back to the morning swing high (cup), it consolidated sideways on low volume carving out a handle. Enter on the break of the base with a measured move target of 100% from the low of the cup to the base of the handle (Fibonacci extension). The target was hit with just 3 minutes left on the clock.

7 comments:

Jim said...

Hey Jamie,

I also caught FWLT. It was not explosive, but got the job done.

You are doing a great job with general market analysis these days.

Rick said...

What made you stick with the trade after the big spike down in the market and FWLT at 3:15 on heavy volume?

Jamie said...

Thanks Jim,

Exactly, the intraday action was quite choppy so I was happy with FWLT.

Jamie said...

Rick,

I was distracted by other business, but it worked out in the end.

yr said...

Jamie,
Would u have considered an earlier entry at break of 12.30pm 15min bar high? The next bar (12.45pm) was an IB and there seems to be PP at 25.25. Also somewhat like a "double-bottom" pattern.

Jamie said...

YR,

All of the points sighted are good. The 3 advancing soldiers following second bottom, need to consolidate, so entry after inside bar at $25.50 is perfect.

yr said...

thanks Jamie. I seem to have gotten a better hang of things now :)