URRE Trade Management/ Update

Yesterday I posted this update in which I thought URRE was in a good position to enter a new trade or add to.

It is actually still in decent position for either case, but yesterday was the best timing. Even if you are not in the trade or interested in it, there are a couple of lessons to be learned in the recent charts.

Here's the bullish ascending triangle, yesterday we had a shakeout below the triangle's support, it was an ideal place to buy as the shakeout was used to accumulate shares from those who stopped out on a break below a popular consolidation pattern. I always talk about looking for subtle changes in volume, the big volume spikes are obvious to everyone and yesterday we had an increase in volume, combined with a bullish candle like yesterday's, these are more often then not reversals and today URRE is moving back in to the triangle and up nearly 3%.

 The subtle daily volume was more apparent on an intraday chart as a washout with a large volume bar intraday on a long lower wick (bullish) candle.

 These are just shakeouts in both directions, the first was an upside shakeout on a bearish "Shooting Star Candle" on heavy volume, this would be similar in consequence to our Price/Volume relationship of close up and volume down, except it was in reverse, the candle was bearish while the volume "appeared" bullish, the true name for this is "churning" and often leads to a short term reversal (although on a 5 day chart, the same candle would likely lead to a longer term reversal in trend) so make sure you look at as many timeframes as possible, what was not very obvious on the daily with the subtle volume change, was obvious on the intraday chart. So now they have shaken out the pattern to the upside and downside.

I was going to say it's like bouncing back and forth between extremes of Bollinger bands, but I decided just to show you the BB chart so you can see for yourself.

(Click on the chart for a larger view)

 The pullback was accumulated, this is what we want to see and was obvious yesterday as well.

 Even the longer term charts show accumulation on this shakeout, like this 15 min chart...

 As well as both the 30 and 60 min charts, so it was a strong signal on the shakeout.

Even though yesterday was the best timing, in the larger picture for URRE, an entry even today is not out of the question.