Swing trades – GIS and COE, reversals with multiple confirmations

I love it when I see trades line up with multiple confirmations.

  • Multiple trendlines that line up at or near exactly where you are considering an entry are very powerful.
  • Additional confirmation with indicators add extra weight towards the case of entering a trade.

Case in point…GIS.  Take a look at this chart:

We have a stock that has been in a downtrend for quite some time, within the red trading range.  At this point the price has reached a point where it also lines up with prior support, at lows that line up with the horizontal blue support line.

Here we have 2 confirmations of support, where we might see a bounce!

I got into GIS a bit too late, a few days after my first tweet where I listed a few charts that I liked…GIS was one of them, on 9/3/17.  Got too busy at work to take advantage.  Got in after a good move, but still, I think this has some room to run further.

Also, I got into another trade (also a bit late) with COE, that was also one of the stock charts I liked on 9/3.

Take a look at that chart:

This chart is absolutely perfect.  Love the sharp declines, which always seem to lead to sharp bounces back up.  Look at how COE bounces hard after hitting the $13 range.  Got in a too late at $14.52 on 8/6, but oh well.  Has room to run to $16, where there is resistance at prior lows.

In the same theme as GIS above, look at how there is another confirmation, this time with an indicator I love to use, Bollinger Bands.  It hit the extreme lower band, priming for a bounce.

Awesome right!  Well see how these late entries work out.  My risk/reward is now higher than it should have been because of my late entries, but I still think there’s some room.

Good luck & let me know your thoughts on your trading results when you see multiple confirmations pointing towards one direction…UP!

Greedy Goblin

 

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