Got into a new trade yesterday, CBS. Before I show you that chart, I want to show you the charts of the overall markets.
The markets were in a pullback mode for approx a month and formed a downward sloping channel during this pullback. Yesterday, all 4 markets broke out of their channels to the upside. This tells me that there's an edge to the upside. Once, I seen that, it was simply a matter of picking a stock with a good edge. Here's the chart of CBS:
You could call this pattern an Ascending Triangle. Doesn't really matter what it's called, the main thing is that we've have 2 consecutive days closing above resistance and now I'm looking for this to move up to the next level of resistance which is approx 32.80. I'll play it one day at a time to see how well it's moving as the next level of resistance was traded approx 3 years, so if I can get a decent quick profit short of that, then I'll take it.
I bought a Sept 28 Call for $1.85 and my stop is 25.21. So, I've got plenty of time for this stock to work it's way up.
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