WFAD #32
$AGN& $PFE
$AGN
Allergan plc., $AGN [NYSE]
Healthcare | Drugs — Generic | USA
The first trading idea was buying stocks of Allergan plc. ($AGN)
(see pic. 1).
The result is shown on the pic. 2.
When this forecast was made, we saw, that this trade is a counter-trend one. You probably remember, that we usually advice to take trades only according to the trend. In this case we had a finished impulsive wave and expected that correction will start immediately because there was an activated double bottom model + bullish divergence.
Moreover we could set a very good stop-loss.
This trade is still in work. Stop-loss is under the local minimum.
We think, that $AGN price can continue a corrective uptrend.
Profit from this recommendation = appr. +8.8% in 26 days (+121.84% annually).
The lesson is =>
- Trade what you see, but not what you think. If you see, that price made a reversal model and started going up — stop selling (at least), believe your eyes, and use long opportunities. The real truth is on the screen, but not in your mind. Train flexibility.
$PFE
Pfizer Inc., $PFE [NYSE]
Healthcare | Drug Manufacturers — Major | USA
The second recommendation was to buy stocks of Pfizer Inc. ($PFE)
(see pic. 3).
The result is shown on the pic 4.
It was a very difficult trade.
The first thing is that price started the uptrend without continuation of expected descending correction. When we saw that local downtrend was broken via breakaway gap — we had to react and went long with a very small stop. It was placed at 32.28 instead of 30.87 (the initial variant). Low risk gave this trade additional point of attraction.
Then the price started to move up and almost reached the closest price maximum — 33.82. When the level 33.6 was reached, $PFE price began to move in congestion. We moved stop-loss higher to protect a part of our paper profit. Several days later Donald Trump gave a speech at the press-conference. He talked about the abolition of «Obama care» programme. Pfizer Inc. stock price was very sensitive to this news. At the same time we can’t say the same thing about Allergan plc. ($AGN), but these stock are both from healthcare sector. It’s quite an interesting fact. In any case we stopped the trade very quickly and took some profit.
Profit from this recommendation = +0.84% in 6 days (+51.5% annually)
The lesson is =>
- Profitable trade can become a loss in a moment. So, always use protective stop-loss, if you are a positional trader.
