Bank of America (BAC): Beware Triple Tops!

  • Post author:

BAC formed a Dark Cloud Cover reversal candlestick pattern at the resistance and have a potential of forming a Triple Tops pattern. I moved my stop loss just below $12.00 psychological support to protect my profit.

Possible Scenarios & Trading Plan:

  • If BAC can stay above the $12.00 support, I will stick to my trading plan to let BAC to head towards $14.40 (161.8% FR). I will continue to move my stop loss upward to protect the profit.
  • If BAC breaks $12.00 support, I will be stopped out. The next plan is to wait for BAC to retrace back to the neckline of $11.00 (also the uptrend channel support – marked in green) and see whether this support can be hold. If there is reversal pattern at $11.00, I will long BAC again. If the $11.00 support is broken, there will be a breakout of Triple Tops chart pattern with price target below $10.00.  I may consider to short BAC using Put option.

See previous BAC analysis and chart pattern with different time scale here.

BAC Mar10-2013

Continue ReadingBank of America (BAC): Beware Triple Tops!

Wilmar Breakout Finally?

  • Post author:

Looks like Wilmar has finally breakout from a Symmetrical Triangle after so many months of consolidation (see previous analysis). The breakout is supported by a spike in volume. However, still need to wait for Wilmar to retrace to test the previous resistance turned support (at about $3.20) to confirm the breakout. Currently Wilmar is pulling back with Dark Cloud Cover candless to test the $3.20 level. Target price for this breakout is $3.60 which is also close to 200D SMA.

Continue ReadingWilmar Breakout Finally?

Agrium Inc (AGU) – Nice Candlesticks Patterns to Trade!

  • Post author:

Agrium has been showing nice & reliable candlestick patterns to trade. Some far the candlesticks patterns have been realiable to predict the future price movement. So far, a few reliable trend reversal patterns like Morning Star, Evening Star, Bearish Kicker were seen. A Dark Cloud Cover pattern was formed on Nov 23 closing, this is another trend reversal pattern. By looking at the chart, AGU bounced back from the resistance of $57.69 and due to pulling back from its recent up trend. I am planning for a PUT option for AGU.

Continue ReadingAgrium Inc (AGU) – Nice Candlesticks Patterns to Trade!