Thursday, April 17, 2008

POT - Potash - Symmetrical Triangle Breakdown

Just wanted to get a quick post up before I head out and take care of some errands. Late in the day I had a nice short side trade on Potash, which broke down out of a very cleanly formed symmetrical triangle.

I liked how the base of the triangle was just below the R2 pivot point. I entered short on a break down of the 182.50 level. I placed my stop just above 183.25.

My target on the trade was just below yesterday's high.

If you take the height of the symmetrical triangle (~2.35) and subtract it from the break down point (182.50), you get a target of about 180.15. POT came close to that point (it's low was 180.33). I was aware that yesterday's high was at 180.19 and the R1 pivot point level (180.59) could potentially act support and indeed it did.

I closed out the trade for a little over 2R as price started to bounce off the R1 level.

Later I'll post my trade of FSLR and JASO.

0 comments:

Newer Post Older Post Home