Pulling The Trigger
Pullbacks are a great way to get into a strongly trending stock after it has
made a move higher. You can use them to take advantage of a stock’s nature to
retest prior highs and lows after a push and a retraction.
2-22-20025
19:58:14
Monday’s Short-Term Setups
PartnerRe (PRE)
is pulling back sharply from the recent high. PRE carries a
3-month relative strength rank of 81 from TradingMarkets.com. PRE pulled
back and traded as low as 52.65 then rallied back to close near its high at
53.87.
PRE left a bullish tail on the close Friday in the midst of its
pullback from high, another indication of the stocks readiness to move back
toward the February 14 high. We see the follow through in today’s trading
session.
Swing traders have now received entry into a position, and
daytraders can take advantage of the pattern as well. They can simply go home
flat at the end of each day and only enter a new intraday position if the stock
continues to trade above the previous high as the retest continues.
Until tomorrow,