What I Look For In Pullback Entries
Many traders look to play pullbacks on
strongly trending stocks. My personal preference is to find a high quality
issue that’s retraced enough from its highs to find some solid price support on
the daily chart. When I see this action take place within some compelling
patterns, I know the right combination of elements are there for the stock to
‘pass the test’ over the long haul, with long positions looked upon as having a
tradable edge, in my humble opinion.
10:42:18
Intraday
Setup Alert
Boston Scientific (BSX)
has formed a potential 1,2,3 at
daily price supports in today’s trade. The stock is down .69 at 63.15 with
triggers above 63.18. The stock is showing some intraday confirmation in the
form of a positive divergence on the 5-minute stochastics (8,3,3).
Boston Scientific also had a couple of other
ingredients that confirmed a potential entry. The stock is a member of our High
RS growth stocks in TM’s Intermediate
Term Report, with the most recent daily pattern also setting the BSX up as a
possible Cup & Handle play. With the reversal pattern coinciding with the
bigger picture, BSX made the case perfectly clear. This looked to be one to
experiment on from the long side in today’s trade.