Wednesday, October 27, 2010

Speculative Bounce Trade.

SMH is performing well today and CRUS seems to be a good bounce candidate.

 Here's a 3C 15 min positive divergence. After a fall that big, there's bound to be a bounce I would think. 3C seems to suggest the same.
A stop can be placed a bit below the recent lows at the arrow and the target zone could be as high as the gap, although I don't think it will completely fill the gap, leaving it as a bearish breakaway gap.

More trades may be coming..

1 comment:

Bert Lynd said...

I like the CRUS trade, my charts are showing it over sold.