Thursday, November 18, 2010

Trade Setup: AEV - Status: Open

Here is the most recent trade that I did:

DMC



Sold it at 39.40 because:

1. Declining volume during advances;
2. Bearish divergence on ROC; and
3. It was showing relative weakness through the entire session that day before getting pushed up at the closing which also happened the next day;

4. Found a trade setup in AEV (plus earnings report factor):



which I believe I was right as it immediately showed profits the next day despite of the strong selling pressure. I am expecting it to advance strongly once the selling stops(possibly up until mid week).

Took a position at 34.10.

Up to date comparison between the two stocks:

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