WFAD #38
$CRL, $RGC
$CRL
Charles River Laboratories International, Inc.
Healthcare | Medical Laboratories & Research | USA
First trading idea was buying stocks of Charles River Laboratories International, Inc. ($CRL) (see pic. 1).
The idea was based on two bullish signals (pic. 1): V-bot. model + bullish engulfing, which was formed higher, than the lowest low of V-bot. This combo means, that bears did not have enough selling power to make new lows => it is good time to try long position. Moreover there was a potential for 2-bot. pattern.
We bought $CRL and began to move stop under each new higher low. When $CRL started to make another flag we added to our long and moved stop-loss under this structure. At that day $CRL made new high => it was good new entry. Unfortunately few days later $CRL broke local low and we leaved the market (two trades were stopped). Perhaps it was too late for adding. Maybe soon we even will see that it was a top for this short-term trend. Who knows? … :)
The initial target was not reached, but this trade is rather profitable one.
Profit from this recommendation = appr. +20.75% in 87 days (+85.86% annually)
The lesson is =>
1. It could be reasonable to add to trade, when RSI is not overbought. If it is, just manage your stop well.
$RGC
Regal Entertainment Group
Services | Movie Production, Theaters | USA
The second idea was buying stocks of Regal Entertainment Group ($RGC) (see pic. 3).
The result is shown on the pic 4.
In this case we bought the breakout of a Pennant. You can see it on the pic. 4. When price of $RGC reached the projected target of pennant, we moved stop under nearest support and decided to hold this stock for further growth. But marked took our stop, and $RGC dropped rather significant (below the Pennant).
Initial target was not reached, but again we are in profit.
Now you can see on the pic. 4, that there is very good long opportunity for this stock (local H&S-bot.). It is ready to go up again. We will probably make another attempt to buy it soon.
Profit from this recommendation = +2.26% in 12 days (+67.8% annually)
The lesson is =>
- If intermediate target was reached (for example, for a Pennant setup) and market tells you that it is going to move down (Doji candle), move you stop closer to the market. Very often you will have an opportunity to reopen the trade later at a better levels.
