March 5, 2009
Long Term Trade Opportunity
By Planet Wealth
To consider a longer term trade, it’s best to find a stock that is at resistance for a small position and at support for a long position, before entering. Take a look at the example on STO to get an understanding of why.
STO, when it produces an entry signal would be excellent for a small position right now, as it is at 3 areas of resistance on the weekly chart which is likely to push it back down.
These resistances are:
1. A two year support trend line that is now acting as resistance
2. A weekly resistance line
3. And a valid Moving Average (MAV)
The weekly chart has also now made major Lower Peaks and Lower Troughs, telling us the sellers are in control.
There are 2 significant Fibonacci levels that are proven to have ha high probability of success and one of them is 50%, which STO is currently consolidating at.
The weekly chart has also now made major Lower Peaks and Lower Troughs, telling us the sellers are in control.
There are 2 significant Fibonacci levels that are proven to have ha high probability of success and one of them is 50%, which STO is currently consolidating at.
On the daily chart there is a rising wedge that has been forming since October last year. A break out of this wedge with supporting volume and indicators could be an opportunity for longer term trade.
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