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Friday, January 08, 2010

LEN - 010710

Posted by Tom C.

Yesterday, LEN did a "u-turn" and rallied - almost - to the FE. What stopped it? A whole number, as I have pounded on for a few months now. It stalled out at $16, and I closed my position on a break of the 2:40 bar's low (marked with the top arrow).

My entry was a little riskier. I can make an argument I entered on a "hammer-type" candle, but I hate hammers that close red. What made me bullish was price finding support above the RZ and on a rising 8EMA. The 4-8 bars made a nice bottom, and I entered on a break of the 8th bar's high.

Fibonacci lines were plotted in traditional style - PDL to ORH.


1 comment:

Nathan said...

Nice trading Tom. I have to learn how to focus in on these setups. My problem is that I find them but then I piss away my profits on less than par trades.

I hope you keep writing in 2010. Happy New Year.