Amtech put in a good word for CEPH this am. It worked. The stock rallied all the way back up to its 50 DMA. On an intraday basis, it rallied from the open to its upper PP before stopping to consolidate. It then carved out a u-shaped bullish base and set up a low risk, B&B pattern. The target was the 50 DMA at $80.10.Wednesday, June 27, 2007
Base and Break Trade - Cephalon, Inc. (Public, NASDAQ:CEPH)
Amtech put in a good word for CEPH this am. It worked. The stock rallied all the way back up to its 50 DMA. On an intraday basis, it rallied from the open to its upper PP before stopping to consolidate. It then carved out a u-shaped bullish base and set up a low risk, B&B pattern. The target was the 50 DMA at $80.10.
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10 comments:
Jamie,
Is ORL the low for the first 1/2 hr of trading or low or pre-market?
It doesn't correspond to the open price for the stock of that day fr. historical prices. Thx.
I use the ORL to represent the opening range low of the timeframe I am trading - usually the 15 minute. So the ORL is the usually the low of the first 15 minute bar after market open and corresponds to 9:30 - 9:45 EST.
Just wanted to say thanks for posting. You've got one of the clearest blogs on technique around.
Thanks Ron!
Jamie - So you worked for Bell Helicopter at one time... what is your education/experience... software, engineering?
Jim,
I wish I had more tech savvy, but no I'm in finance and accounting. At Bell Helicopter, I worked on developing a new cost accounting system.
Hey Jamie how do you calculate your pivot point analysis
Hey Teddy,
Pivot points are points where price pivots and changes direction. I recently wrote a post entitled Pivot Points Revisited
You can map out the PPs as I did on the AMGN chart for any time frame - the longer the timeframe, the more meaningful the analysis. If a PP is tagged several times, the break often results in a vertical move like the CEPH trade.
excellent trade. So, CEPH was on your radar because of news this morning? You then liked the pattern and started to look for a good entry?
OONR7,
Yes, but the Briefing - Amtech comment caught my eye because CEPH is on my short list of biotech watch list stocks along with GILD, CELG, AMGN. Biotechs have been leading the pullback and many of these stocks were great shorts on weak market days but now they are way oversold.
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