On Feb. 24th I posted CHT as a trade candidate and while CHT was already down big, I urged you to put it on a watchlist for a bounce to the $31.50 area. Well CHT has bounced and is nearing the area mentioned in the post, this is why we use watchlists- to keep tabs on potential trades and we use alerts to let us know when a potential trade is nearing our target so we can pay close attention and look for a tactical entry.
Here's CHT...
CHT longer term top and the date of the trade idea. The large volume on an established decline suggested a bounce was coming. The pattern implied target is $18.
A closer look at the bounce toward $31.50
Here the Trend Channel on a 5-day setting has a stop in the $33 area so a bounce to $32 or $32.50 would be even better from a risk management point of view.
The long term daily 3C shows CHT in a strong daily leading divergence, the trade has been all about a tactical entry.
Here's the 5 min 3C that shows the accumulation by the middle men for the bounce. Keep CHT on your radar today as SJM was yesterday.
Is interest rates about to start going up?
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Yes, I know - it does not make any sense - FED is about to cut
rates...but....real world interest rates are not always what FED wants it
to be.
5 years ago
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