Wednesday, January 12, 2011

New Trade - MTW


Proverbs 3:1-2 "My son, do not forget my teaching, but keep my commands in your heart for they will prolong your life many years and bring you peace and prosperity"


Got into a new trade today, MTW:

This is my "2 days close above resistance" type of trade - even though it's been 4 days. This old resistance/new support was the line in the sand where the sellers pushed down the buyers. Now that we've had a couple of days above resistance, it seems that the buyers have overpowered the sellers and now I'm looking for the sellers to retreat to the next "line in the sand", which should be the next level of resistance above.

Here's a longer dated chart showing this resistance level:
I bought the March 13 Call Options for $1.55 and looking for the stock to go to just below that next level of resistance above - approx $15. I put a mental stop below the last couple of lows where the buyers came in to push price higher - see the yellow rectangle from the first screen shot.

By God's Grace we'll have another profitable trade!

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