Thursday, May 05, 2005 4:46:20 PM
Dominion Resources(D) H&S Pattern Trade Recommendation
So, why just do the Chart Talk? Let's short this thing here. Look at the negative divergence between today's price action and the OBV and Accumulation/Distribution on this intraday 1-minute chart.
Just like any trade, there are many many different ways to play this. One suggestion is to buy Octover $75 Put option at under $6.
With the H&S formation completed (see my previous threaded message), the target profit for this game plan would amount to approx. $2-$3 or 33%-50% gains. Since this is not a massive type of H&S pattern, I'd be happy just to set my profit traget and not get too greedy.
One last important thing is to set your stop or close this position once the price goes over $75.
So, why just do the Chart Talk? Let's short this thing here. Look at the negative divergence between today's price action and the OBV and Accumulation/Distribution on this intraday 1-minute chart.
Just like any trade, there are many many different ways to play this. One suggestion is to buy Octover $75 Put option at under $6.
With the H&S formation completed (see my previous threaded message), the target profit for this game plan would amount to approx. $2-$3 or 33%-50% gains. Since this is not a massive type of H&S pattern, I'd be happy just to set my profit traget and not get too greedy.
One last important thing is to set your stop or close this position once the price goes over $75.
David
#board-3693
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