Monday, August 24, 2009
Aug 24 - SHLD (C&H)
SHLD gaped down big 3 days ago and since that time I kept it on my focus list to see what it would do. Today the stock gaped down again but this time with some clear bullish action. This is a nice C&H pattern (but also could be read as a nr7 contraction sectup). Either way, there is an orderly bullish action a very shallow pause with volume contraction and then a 100% extension.
Most of my trades these days are in the direction of the major trend so it was a bit hard having the 5EMA and PDL as potential resistance points, but SHLD did not have any trouble penetrating those areas.