Here’s Why You Should Watch Out For A Breakout
Ceradyne, Inc (CRDN)
closed near the day’s high on strong volume yesterday. But as you can
see below, the stock is facing to overcome the 38.2% retracement level and
20-day MA.
09:38:16 (from TradersWire)
|
Action |
Symbol |
Order Type |
Setup |
Stop |
 Target |
Current Price |
Posted By |
|
Sell |
CRDN | sell stop at 19.74 | near daily resistance level | 19.89 | 19.57 | 19.78 |
TK |
Now, let’s look at the 5-minute
chart from this morning. CRDN opened above its resistance level on strong volume
and appeared ready to attract more buyers. Notice the stochastic was actually
showing a negative divergence. This breakout was a fake. I placed a sell stop
just below the resistance line.
10:03:58 (from TradersWire)
Follow up on CRDN (Pt 3)
It has reached our target price. Cover the rest, or re-adjust your stop.
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If you have questions, feel free to
mail them to me.