Stocks, charts, risk management & coffee

Motorola (MOT)

MOT

 

I just added a long position in MOT. I really like this chart and marked it up. This is breaking out from a symmetrical triangle on nice volume. The volume in this stock has also been moving up generally. RSI is in a good area for an entry on a bullish stock at 60. Also notice that this is a continuation of a bullish trend. There was a breakout from a triangle at the end of July as well.

The 50-day SMA can be used as a stop zone although I’ll likely give it a little more room to work using the low on the closing bars prior to the breakout as a stop area.

§788 · October 29, 2009 · Uncategorized · · [Print]
  • FSLR will be my best trade of the month if I can get in long for $115. What do you think?
  • I think it depends a little on timing. If it crashes to $115 immediately in a very oversold state and hits support, I think it could be a nice trade. If it moves down in a more gradual manner, I don't think I would want to play the support bounce.
  • CC, Whats' your stop loss on MOT?
  • $7.7
  • MOT, looks like 8.3 is the top of the wedge line on a pullback, If I were looking for a pullback entry--Does 8.3 seem about right? The chart is soooooooooo, tiny!
  • Another strategy is that since I'm very skeptical of this move up and waiting on the dollar to give me a clear signal is to make MOT or longs you like a pairs trade. I actually shorted some IWM against my MOT position.
  • yeah, $8.3 would be the top of the triangle. But, MOT is not overbought here so I personally did not wait. Could always go half here and add on a pullback OR wait and see if it can break $10 and add to your initial position at that point.
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