Trade: Long CTXS Jun 2010 $45 Calls - 2 contracts at $4.90 each
Set-up: 16-Mar-10 %R retest...NOT A TRUE RETEST...since %R was only 79.81
Conditions: Efficiency Ratio, Stochastics, ADX/DMI are all very bullish..
Re-Entry: none.
Exit strategy: 46.97 is violated on daily chart.
Target for profit taking: Sell entire position at 75% profit.
Time Frame: Prepared holding 3 weeks.
Where found: Stocks on the move
Emotions:
After watching a webcast with Price Headley, he said that he likes to get in ONLY on %R retests and mostly those that occur outside of the accel bands. In this case, the stock closed inside the bands, but only barely...and it rebounded nicely the day I got in.
However, this was not a true %R retest...but because it was close enough and it happened nearly outside the accel bands, I decided to take the trade. CTXS is also very solid fundamentally.
This so far is working out realy well as it bounced right away. The stock is in a very strong group and has solid fundamentals...the uptrend has been in place and is also strong.
Daily and Hourly Chart below.
