Want to make money like big guys in the market follow them!

alitrader007 Updated   
NYSE:EAF   GrafTech International Ltd.
I like to write a little story about my stocks picks even though I am sure most of the people don't bother to read them. However, I think every stock has a interesting story behind it as how it got here and where it is going from here. At the end of the day prices are controlled by humans and stocks follow their masters.

This week I stumble upon a very interesting phenomenon. Usually I brows through set of stocks with potentials and do technical analysis to find my entry point. Looking at EAF I found it forming a very nice base, the RSI has rebounded nicely right around 11.80 level. and has potentials to go to double top at 14 level. Then zooming out I can see the next resistance level is between 17-20 level. That is almost 100% potential gain. On the down side EAF has room to go down to 9.00 may it go down from here and breaks the 11 dollar resistance point. Hence go about this I will add at 11.00 may we get there and and have a very tight stop. So I execute the trade mid week and was waiting to see if the break out will fail or not (so far it has not)!

However, on Friday something very interesting happened. EAF volume average around 3-4 million shares a day. However, at the end of the day someone bought 10 millions of EAF.

So here is the take home message, if someone drops 100 million dollars on a stock (with exception of so called meme stocks) and technical and fundamentals also make fit the scenario then it is no brainer to follow. Because someone who plays with hundreds of millions of dollar for one knows what they are doing otherwise they wouldn't have or be trusted with that kind of money.

So here is how I am going to play EAF moving forward next week if it breaks above 12.40 I will add 50% to my position, if it goes down to 11.70 I would also add 50% to my position. I will sell off 1/3 at 14 1/3 at 17 and keep 1/3 untill the cows come home!

Today there was a significant pull back on EAF. this stock has room to go down to 11.00 dollars. However, if it prints cup and handle pattern. It will have a significant break out. If the stock doesn't hold these levels I downsize my position at loss to only 1/3 as a long term investment and re-enter once the handle of the cup establishes.
Despite massive pull back in this stock I am still holding 1/3 of the original position as an investment. at 10.30 level we are at a support level will this support breaks. I would recommend against this stock!
EAF, despite excellent earning it came under pressure today. However, buyers grabbed this stock as there is no tomorrow. I have added to my position. 11.80 is a strong resistance at this point. May it break this stock has room to 12.20, from there 13.00 and 14.00 would be next level. I believe one day we will see this stock breaking 14.00 hence I will be holding on small portion of my position no matter what!
Cup and handle is complete on this one, I am closing half of my position and holding rest of my position with a stop at 12!

Not a Financial Advise, I may have an open position in this underlying.

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.