Monday, July 18, 2011

A Little Clarity Today.

The right side of this current weekly chart of SCO shows a strong move to break a long down trend and price action has fallen back to the middle Bollinger band. I think that another bounce to the upside should occur not only because of the supporting middle Bollinger band but also because of the bounce and re-test of the 50% Fibonacci retracement level. Exit area is still $50.00 to $54.00 based on daily chart.

Weekly Chart by

Thursday, July 14, 2011

SCO Update.

I must admit I was concerned about the price action of SCO the past two days, but I calculated the daily price swings the past week and $2.00 price swings are normal for SCO. With the trend still up and the 2 period Williams %R showing oversold conditions, I figured something had to give and it did. I still plan to exit around $51.00 area but I will make my decision based on how the MACD looks around that time and price.

Daily Chart by

Wednesday, July 13, 2011

Long SCO Update.

The window was shut and held, let’s see what happens next. I think the window will get another test to make sure it is closed and if it holds a rebound could happen. If not, more selling could occur, but I have to wait and see what happens. All I know is that the trend is up, and on pull backs to the 50 day rising EMA you go long. I got in at a good price with a daily MACD rising from a bottom, so I can wait it out a good while.

Daily Chart by

Sunday, July 10, 2011

Long SCO 7-8-11.

Daily Chart by

I entered long the SCO based on the daily reversal chart pattern (shown above) and the weekly 2 period Williams %R being oversold and rising (shown below). I am looking for a move to the upside around the $52.00 to $55.00 price area.

Weekly Chart by

Wednesday, July 6, 2011

Just Searching.

Part of trading is being patient and finding the patterns that you like to trade while your main trading option is on hold. Sort of like hunting or fishing in a different spot until your main spot becomes active again. I use Yahoo's Finance Screener  to search stocks with certain price criteria and looking for bullish/bearish divergences of MACD histograms, with one eye on OIL and SCO.

As of now, I think the market is overbought and I expect a pullback. I am looking to go long a high beta, low priced stock on this pullback.

Daily Chart by

Tuesday, July 5, 2011

Exited OIL at $24.90.

I thought that the gap at the open was going to get filled and since prices were close to my exit area, I decided to sell. I made a small profit and that is all one can ask for. Free money is free money. I am waiting for a similar pattern to trade in the future and as of now I am just hunting for another sale.

Daily Chart by