Cutting your losses and letting your winners ride

Good Morning Traders,

Just returned from camping with the family over the weekend.  I see our charting of CDY and TLR have returned the positive results we had hoped for.  Now that our plan was successful we need to look at our original plan and revise it some to reflect our current situation.  In order to do so we just need to look back at the charts and identify points of resistance and support again.

 We can see from the chart of CDY that the price action is between resistance levels of .21 (above) and .19 (below).  There is another resistance point below the .19 at .18.  Outside of these points the only point of resistance above will be the 200-day moving average at .275.  To gauge the health of the stock we need to look closer at the different time frames and watch the money flow, MACD, and RSI:

It looks as if the stock is consolidating for the next move up (in my opinion).  The .19 level of support is very strong and it appears traders are recognizing this  and returning to the stock.  The money flow and RSI are both on the rise while the MACD looks ready for another bullish crossover.  Both the daily and 5-minute chart are live so you can monitor them right here if you don't want to set up your own charts, but I encourage you to do the legwork. My son always reminds me practice makes progress.Take the information in this post to do your own evaluation of TLR.  I am always on the lookout for feedback and comments so let me have 'em and I'll be happy to offer my insight.

Famous Trader Tymothy Sykes reveals in his last video session his acronym ALFT.  Always Looks For Tops.  If you can spot the top of the run, you can avoid the reversal.

Trade Well,

Trader43

Unusual trading activity at CDY

Good morning traders,

We have another stock today to put on the radar this AM.  CDY.

You can see this industrial metals and minerals stock has been in a down trend for over a year.  The looming threat of being De-listed coupled with the steadily disappearing stock value is enough to send investors racing to the door. 

Should we turn out the lights yet?

 

Several interesting discoveries as of late suggest there may be an opportunity to capitalize.

(1)  The downward price action has broken out of its descending wedge pattern and is currently trading above the 50-day moving average for the first time in over a year.

(2)  The stock has recently traded in multiples of its daily trading average. 

(3)  Robert Kopple (an owner of greater than 10%) has been on a buying frenzy.  Recently reported by the SEC were almost a half million shares purchased from AUG 12-14.

(4)  A press release was put out yesterday stating NYSE-MKT Accepts Cardero's Plan of Compliance.

This is exactly the type of setup we look to profit from.  Currently trading for less than $.13/share it would not take much to earn a fantastic return in a short amount of time.

Put this one on your watch list for the next few sessions and formulate your trading plan before you buy.

Don't give in to gambling,

Trader43

The importance of buying and selling breakouts and resistances-Refining your plan

Good morning Traders,

This blog is not like most others.  This is not one of those get rich quick schemes where I pump stocks and sell you my shares leaving you with my "baggage".  I simply watch stock charts in the hopes of catching low priced stocks for a short trade.  The only stock I have purchased that is on this blog is PLUG:

I purchased shares at the beginning of the breakout above $.40 (at .4047) and sold about a week later at .5218.  This represents a gain of about 29% in a week.  This return is better than any index this year.

The opposite holds true with LPR:

I had shown the breakout and resistance levels as highlighted above in the hopes of catching some momo like PLUG.  The plan was to pick up shares on a breakout above .60.  While I watched for the stock to surpass this level it took a nose dive. It is now trending lower along the original downtrend line:

This is why we stick to the facts of our trading plan not our feelings.  By trading the facts and not my feelings I narrowly avoided a 50% haircut.  Please do not mistake a chart setup for a buy endorsement from this site.

Now on to the good stuff:

Two plays from the past posts are still in play.

BRD:

BRD announced earnings this week and the market did not kick her to the curb.  The ascending triangle is still in play and is worth a watch over the next few sessions.

TLR:

Announced earnings as well this week and its current chart looks good in the near and medium term.

We've had quite a few readers over the weeks.  I would welcome any feedback, comments, other trading setups/lessons, or simply donate a cup of coffee below.

Thanks for reading and have a great weekend,

Trader43

New Pennystock Charts getting close to a breakout

Good Morning Traders, It's been a few days since my last post so lets get right to it. The first chart up for watch is TLR.

TLR is consolidating just north of the 200-day moving average and the 50-day average is steadily rising. Timberline has been forming a very strong base all year long. Remember, the longer the base the larger the breakout move. Resistance represented on the chart by the long purple line is right on top of the price action. Less than 1% of the 62 Mil shares in the float are short is another great sign.


The next chart to be added to the list is QMM.

Traders interested in a little more excitement may wish to check out WEST.

The Price action is pushing up against support (.03) and closed above the 50-day moving average. A break above $.03 with large volume may indicate a small bounce off the bottom.

 Thanks for viewing and Trade well, not often.