Here’s A Couple Of Ways To Play The Trend
One of the keys to buying pullback
entries in the direction of the overall trend is finding as much “support” for
your position as possible. When I look for first entries in strong stocks,
pattern and price supports in the form of Fibonaccis, moving averages, and prior
pivots all play a role in the decision making process.
10:54:37
Intraday
Setup Alert
National Semiconductor (NSM)
has pulled back into a 50% Fibonacci support level. This level is from
yesterday’s consolidation close near lows of the day. The intraday pullback is
confirmed by the prior sessions highs as well as a confluence of the 8,20, and
60-Period EMAs on the 5-Minute chart. The stock is currently consolidating on
price supports, up .40 at 20.60, with reversal long triggers set above 20.62.
And then if things really get cooking, there’s always the classic breakout
to play at session highs!!!
11:42:32
Intraday
Update
National Semiconductor (NSM)
has moved up .25 since our reversal alert. The stock is now forming an
intraday Cup & Handle with breakouts
above pattern highs established at 20.91. NSM is up .63 at 20.85.
It’s nice when a little background “leg
work” ends up turning into well-conceived trade, doubling your pleasure as
it “runs up” your trading account.