Strict Logic
There are many ingredients to a good
trade. In order to find good setups, you have to be strict about the criteria
that must be met in order for you to get into a trade.Â
Let’s see if today’s Chart of the Day passes muster:
In this chart, we can see Cirrus Logic
(
CRUS |
Quote |
Chart |
News |
PowerRating) is following
through off Friday’s healthy bounce from a four-month trendline, its 50-day
moving average, and its 38.2% retracement.Â
But we’re actually one day late. The problem with this setup
right now is the overhead resistance that is kicking in. CRUS is running up
against a short-term two-week trendline that extends downward from CRUS’s October highs. Also, today’s move occurred on unimpressive volume. From here, it looks
like we could get more bouncing around with the trading range of the past three
weeks before a meaningful move occurs.
Till tomorrow,
Eddie