Can anyone kindly please help me with some sort of chart
analysis of JRCC, I have a big position and with the tight bolinger
bands not sure which way this might break...is there negative
divergence anywhere (or maybe positive) and or a head and
shoulders, sorry I am not a technician. A grateful member.
It's moving up in a well-defined channel, has support at the
20MA and lower uptrend line. Additional horizontal support
around 12.50. Fast stochastics are pointing down, but well
above 20. No negative divergence on the MACD; could be
setting up that way, but isn't there yet. I wouldn't consider
the BB all that tight, but even if they were, the trend is up and
it closed just above support on Friday.
To me, it looks pretty good. S&P is looking a little
bullish with the 5,3,3 turning up. That, along with this being near
support, would keep me in it with some stops in place.
If it were me, and depending on the entry price, I'd put a stop
below the lower trendline, or if I was willing to give it some more
room, put in two stops - one a little below the lower trendline for
1/2 shares and another around 12.50 for the rest. If the MACD
developed neg divergence, I'd tighten up my stops or take
profits.
If it continues moving up in the channel, I'd adjust my stops up
accordingly and take some profits along the way. If it pushes
through 15, next resistance looks to be 19.13, then 19.86.
one other comment - earnings start rolling out this week.
No one should be expecting good news, but the reaction to the bad
news is more important. I'd be more conservative than usual,
tighter stops, more profit-taking, etc.
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JRCC
Posted by efdjr on 18th of Jan 2009 at 01:40 am
Can anyone kindly please help me with some sort of chart analysis of JRCC, I have a big position and with the tight bolinger bands not sure which way this might break...is there negative divergence anywhere (or maybe positive) and or a head and shoulders, sorry I am not a technician. A grateful member.
JRCC
Posted by rjdst on 18th of Jan 2009 at 09:36 pm
It's moving up in a well-defined channel, has support at the 20MA and lower uptrend line. Additional horizontal support around 12.50. Fast stochastics are pointing down, but well above 20. No negative divergence on the MACD; could be setting up that way, but isn't there yet. I wouldn't consider the BB all that tight, but even if they were, the trend is up and it closed just above support on Friday.
To me, it looks pretty good. S&P is looking a little bullish with the 5,3,3 turning up. That, along with this being near support, would keep me in it with some stops in place.
If it were me, and depending on the entry price, I'd put a stop below the lower trendline, or if I was willing to give it some more room, put in two stops - one a little below the lower trendline for 1/2 shares and another around 12.50 for the rest. If the MACD developed neg divergence, I'd tighten up my stops or take profits.
If it continues moving up in the channel, I'd adjust my stops up accordingly and take some profits along the way. If it pushes through 15, next resistance looks to be 19.13, then 19.86.
one other comment - earnings
Posted by rjdst on 18th of Jan 2009 at 09:48 pm
one other comment - earnings start rolling out this week. No one should be expecting good news, but the reaction to the bad news is more important. I'd be more conservative than usual, tighter stops, more profit-taking, etc.