After successive failed attempts to move back above the 47.18 resistance baseline, the trade was closed out at 46.88 on 4/11/2011. This trade only returned a 0.61R.
Update: scaled out on 4/7/2011
Scaled out 1/2 position size as it retraced back below the 47.18 resistance/support baseline when the market dipped on the news of another 7.1 earthquake shaked Japan.
Update: move stop to breakeven on 4/6/2011
After today's move above the 47.10/47.20 resistance level, the stop has been moved to breakeven to avoid turning a profitable trade into a losing trade if this breakout turns out to be a fake out.
A limit order to sell 1/2 the position near the baseline level of 48.36 will be placed to lock in some profit as it move through this level. If a gap up open above this level, then a stop limit at 48.36 will be used instead of a limit sell order to protect the profit while letting it run for more. Click on the chart to get an updated view of the price actions.
Entry: long on 3/29/2011
A long position on JPM was initiated today for a swing trade. The setup is based on the bounce off the 20 EMA and the 50 SMA support. Today, a small bullish hammer candle formed with its wick penetrated below the moving averages and bounced back above it, then it closed near the high of the day. The initial price target is the baseline resistance near the 48.36 level, and the ultimate target is near the bull flag measured move level of 54.50. The position size is determined using a stop loss level between 43.40-44.77.
Here are the charts showing the various price levels being monitored for this trade. Click on the chart to get a zoom view of the chart.
Updates will be posted when there are changes to this trade.
