Set-up: 25-Feb-10 set up on Daily chart on both 20D Accel bands and 30D $R.
Confirmation on both Accel band and %R on 2/26/10.
Conditions: Efficiency Ratio, Stochastics, MACD, and ADX/DMI are all very bearish.
Re-Entry: %R retest on 3-MAR-10...High of day is $74.55
Exit strategy: if 74.55 is violated.
Target for profit taking: if MON closes at or below 66.11 take 50% of position off.
This is 78.6% Fib extension from 1/6 peak to 2/5 low to 2/22 peak. Also 52 week low resistance level.
Stop loss: close above $73.30 (set-up bar's high).
Time Frame: Prepared for 1 month+ holding period.
Where found: IBD Stocks on the move Sunday 2/28/10.
Current P/L: -$470
Emotions:
This was very difficult as MON is now within the accel bands and this is the second up day in a row. The company got approval in Europe for selling 4 types of GM seeds. It seems to have bounced off the 50% fib extension...Regardless I put the trade on based on %R retest rules.
Stochastics, Efficiency Ratio have also retested now. ADX remains above 40.
