Maybe you can profit from my mistake. For some reason, I can't seem to catch EEI. No matter how bullish I am on this stock, I always somehow end up being shaken out because I was never granted with the right timing. I can't say that I just wasn't patient because I waited for months. Maybe I just wasn't patient enough. Recently, I sold my EEI at around 3.65 because I just wanted to exit the trade so I can find a fresh start somewhere else. The next day, EEI bounced to 3.77 and today, as high as 3.86.
First, let me tell you why I decided to sell. Three days ago (Monday), EEI ought to have bottomed out around the 3.65 level as seen through the bullish hammer it made. However, if you'd notice, this hammer had no volume so the next day, when it formed a black candle, I sort of panicked so I sold. Can you just imagine what I felt when it rallied the next day? It's not yet confirmed but if EEI is able to convincingly break above 3.85, then we may see its descending triangle fail and a failed bearish pattern, is a very bullish one. PNB had a similar pattern, which failed. It subsequently rallied to as high as 44.50. My two candidates for a failed descending triangle are: EEI and BEL. By the way, I almost forgot. EEI has a cash dividend coming up. Look at EEI's movement before its previous ex-div date of June 1, 2010.
Caveat.
8 comments:
Hi. Thought you might be interested. :)
http://wp.me/pXzcC-db
Interesting! Having sold EEI at around 3.65, seeing it continue its decline to 3.50 would make me feel so much better. Hahaha! Vindictive? I'm just kidding, of course. Interesting because while your analysis points to the completion of the AB=CD that may lead to a downside target of 3.50, mine is on the lookout for a breakout. I may have forgotten to mention that before it does, I expect a consolidation. It should no longer fall back to 2.70, at the most, or else that would show that the resistance held.
I guess this shows two possible scenarios to watch out for.
Thanks for the heads up, genkumag! :D
By the way, congrats on your EEI trade last May!
Thanks, thanks!
Yes, I agree. The divergent views makes this trade (and others) interesting. :)
Makes me thankful, actually, that I'm a trader and not an economist whose views are often set against 9 other divergent opinions. Us, we only need to choose one of three: up, down, or sideways. I'm overstating it of course, but still... :)
I totally agree! ;)
Congrats! :D
There goes the breakout! I didn't buy EEI though. I'm biased already because of my bad timing on this stuck. Hahaha! :) I hope somebody did!
DMC pa rin :)
Yeah!! Cheers! ;)
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