I have noticed many times pricing will run back up to a "double peak" in the 34 period or 340 period. In this case CP has popped back up to the 340 SMA double peak from previous levels... I'm sure a fib guy can step in here and explain the retrace in 3....2....1....
brschultz aka markettimer777
My quant model predicts
Profitability: it has a high probability(66%) to rebound at this level.
Worst Case: it could drop to $166.88
Money Management: Bet no more than 33% of capital
Suggested Strategy: long stock for 5 Days, wait and see
CP: Canadian Pacific Railway Limited
CP reports preliminary Q3 results, raises 2018 guidance and outlines strategy for driving sustainable, profitable growth at the Company's Investor Day
I've been short since 214. When I initiated the trade I targeted 210 as the key level in the short term to break, and sure enough it is stalling there today. A decisive break below 210 could easily send it back to 200. If 210 holds and the broader market turns up, back to 220 is likely.
Many a time, trader are told that we should not be averaging.
But again there is something they left out i believe.
Averaging is workable on 2 conditions IMO:
1. I can stomach expected loss initially
2. Only average very near to market top or market bottom
I am ready to short again when price hit 220.
I shorted immediately after seeing a double divergence @ strike price 208
as a result of my impulsiveness, price of CP shot up to 210.5 and i was at paper loss of 150 momentarily.
But having a declining MACD backing me up, i just stay on and wait patiently.
Took my 50% profit when price hit 50ema yesterday.
Two important candlestick pattern at the top. Bearish...