Wednesday, September 29, 2010

New Trade - FWLT



Time to make those who take the other side of my trade cry. Nothing personal, but they've taken plenty of my money and time and it's time for them to pay the piper (or the Trent).

The markets are currently bullish, but they are a little toppy, so I'm expecting a pullback. However, you never know, especially in this market. So, we could also just keep trudging up. In any event, I'm taking a bullish trade here in FWLT.

First, let's look at the chart:

The reasons that I'm getting into this are:
1. It's currently in a bullish trend - so likely to continue up
2. Last week it broke above resistance, had a nice pullback and broke up through resistance again today.
3. Look at today's candle - that's a move! The bulls are in the house.
4. Check out that volume increase
5. The MACD has been going up and had a nice little tick up today
6. The stochs were in oversold territory and are now popping up out of it
7. And something you can't see on this chart, which explains the big pop up today. Today news came out that this company may be bought out, which usually means and increase in stock price.

So, when you combine the above, with the bullish market then you got yourself a trade that'll make those market makers cry.

The target, which you can't see on this chart, is around 28ish. I may get out just a tad before that in the mid-high 27's.

There's a good possibility that we'll go sideways for a few days since we had such a big move, but you never know, it could just climb up as well.

We'll be following this one closely, but I'm not going to get impatient, instead I bought plenty of time in an option and just let this baby go.

I bought the November 23 Call for $2.93. Let's make some profit.

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