Friday, February 27, 2009

Update on ABX Swing

This is the TSX chart of ABX where I placed yesterday's swing trade. The Canadian chart is slightly more symmetrical than the US chart. Price gapped into resistance and the whole $ level so I exit the swing for almost 3 point gain. Price retraced back to the $38.00 base and I entered long again. The R-zone acted as resistance and I didn't want to have a losing trade going into the weekend, so I exit. Price retested yesterday's lows and reversed, so I swing again.

From the daily chart below, we can ascertain that $38.00 is a solid support area - several pivots and 200 SMA. However, it could fail and price could go to $35.00. Hopefully that won't happen. I'm targeting $45.00.

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