Saturday, March 26, 2011

Review of long setups

Last week was an awesome week if you are a momentum trader with breakouts abound. Personally, I had my best week of the year. But heading into next week, I hold around a 75% cash position. I had put up some long setups in last weekend's watchlist and I know most of them were doing well earlier in the week. I thought it would be a good idea to go back to those setups to see if there are any signs of exhaustion or profit taking. So, here are all the long setups posted last weekend.

ALSK - Broke the crucial 10.50 level this week. Nice follow through and a nice close on Friday. Still in play for next week. 11.25 strong resistance.

ARIA - Another nice mover. Broke out after forming a bull flag earlier in the week. Rejected at resistance on Friday and closed close to lows of the day. Out of the watchlist.

CMO - Still consolidating butt even great volume couldn't get it to move on Friday. Out of the eatchlist.

RES - A beauty! Broke out from the cup and handle pattern pointed out last weekend. I held it earlier this week, but sold out before the big move on Friday. Hopefully you readers played it better than me!

HOS - Still in play. Like it on break of 31.

KBR - Moved nicely but showing signs of exhaustion. Could do with a pullback. Out of the watchlist.

PBR - Like this as a breakout candidate for next week. Stop below MA(20).

Almost all of the plays pointed out last weekend did very well and I hope you readers benefited from some of these calls! I was expecting to see more signs of exhaustion but many of these setups are still in play. I will be back with a post on the overall markets and a new watchlist for next week tomorrow.

Take care and good luck!

P.S. Here is the watchlist for this week and also Chart of the Day.

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