Phillip Morris Smoking On 60 Minutes
From time to time, you’ll come across a stock making a parabolic runaway move
that looks enticing–but which has no discernable pattern to trade off of.
If you are a swing trader who likes to trade pullbacks, this can be a little
frustrating.
But one great way to find recurring tradable patterns is to flip your charts
between different time frames. Sometimes, when nothing jumps out at you on a
daily chart–you’ll find that everything clicks when you look at a 30- or 60-minute
chart. One great example of this is Phillip Morris
(
MO |
Quote |
Chart |
News |
PowerRating).
In this 60-minute chart, interesting patterns you wouldn’t immediately spot
in the daily chart emerge. Over the past four weeks, MO has been breaking out higher
from pauses lasting no more than three days. In this chart, you can see that the
most constructive and sustained gains occurred on pullbacks to 50% retracement
levels. Thus, a trader waiting for a conservative entry might wait for the
current pullback to hit the next 50% retracement level–or perhaps scale in down to
that point.
Until Friday,
Eddie