Written on August 24, 2016
CAL made a big move yesterday, breaking some tough resistances: SMA 100 daily and weekly, as well as EMA21 monthly.
CAL’s stock price had been depressed since the last quarter 2012, not long after it achieved its peak price of P24 on June 2012 .
It had wallowed in a range since then as it faced SEC regulatory issues due to its alleged stock price manipulation during its initial public offering.
The CAL chart had been of interest to me since last year.
Here is a link to a blog I made on CAL on January 2016.
….and another one on October 2015
Yesterday, right at the open, CAL made a bullish crossover on its 3 minute chart. The RSI had also broken out of its range. This first push peaked at 2.99. Busy with my ARA (Araneta Properties) trade, I ignored it , as I took profits on ARA.
At CAL’s initial morning surge , price consolidated within a triangle until lunch time. With the ARA trade out of the way, I got to draw this daily chart, which showed a box breakout and a breakout from SMA 50 daily.
So I purchased CAL with 100% of my portfolio at the resumption of trading at 1:30 pm. The 3 minute chart below shows how the CAL trade went down all day. The price broke out of the triangle immediately after lunch time and made a new high at 3.28, as it formed a second triangle. This was the peak of the second push.
I was waiting for a third push and I wanted to take profits there. However, I found a bearish divergence in the 3 minute chart. Bearish divergences are just warnings and I held on to my shares but I realize that price also failed to break 3.28 three times after RSI fell below 70. I protected profits, with the plan to buy back when that bearish divergence is negated via a breakout from 3.28.
This was the result of that first trade:
As the day progressed, the RSI recovered above its range and a third push seemed forthcoming . A break above 3.28 confirmed that this was the third push I had been waiting for, so I bought back my shares. I settled for 3.33 because the buy ups were very fast . It was near closing time (3:09 pm) . (I would not have done this buy up if it was 2 pm).
However,in trading, the price matters just as much as the time of day. The furious buy up towards the close was a signal that the momentum is strong and could continue the next day.
I targeted a sell at 3.60. This was the kijun sen resistance on the monthly chart. Destroying this entails a strong effort. The Commodity Channel Index (CCI ) also showed a reading of 448.39, and I feel it was way overbought. I protected my profits and sold at the close at 3.55.
Here is that second trade, for transparency.
If 3.60 is broken, that’s a different story. It’s another trade for another day , and another blog entry.
Be happy with the rewards that come your way everyday.
High Probability Trades Webinar
September 10 and 17, 2016
Deadline to register is on September 3, 2016. Only 5 slots left as of today.