Location Location Location
I don’t like real estate, but when the
chart pulls my chain, I’ve got to acknowledge the technicals. I’ve missed out on
more trades than I care to admit because I put my opinion above the what the
chart was telling me.
CBL & Associates Properties
(
CLB |
Quote |
Chart |
News |
PowerRating)
is basing in a tightening pattern with RS line confirmation backing the price
trend. I don’t like the fact that the 50-day simple moving average Tuesday
was underneath the midrange of the pattern. To find the midrange, just add the
pre-correction intraday high to the intraday low of the base, then divide by 2,
which in this case gives you 26 3/4. But it’s close enough to be considered
tradable. Just insist that the stock makes a tad more price progress to work off
the overhead supply before looking for a pivot point.
In
any new trade, reduce your risk by limiting your position size and setting a
protective price stop where you will sell your new buy or cover your short in
case the market turns against you. For an introduction to combining price stops
with position sizing, see my lesson,
Risky Business.