| Technical Analysis HANS CRS OMG RTP Risk Rewad Trading |
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| Tuesday, December 5, 2006 |
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Nightly Update- HANS, CRS, RTP, & OMG
Current Portfolio
There are currently 44 positions in the portfolio, and nine of them are reiterations to buy more or double on down that position.
Hansen Natural Corporation - (HANS) - Before the breakout Daily Chart
The daily chart of HANS illustrates that it is in the process of completing it's wave 3 to 4
pullback off of it's highs. As you can see by looking at the chart, HANS held it's November lows at $24.75 and has been consolidating in a sideways move ever since. It has also been holding it's 13 day EMA quite nicely. Today, HANS is up 2.54% at $28.64. If you look at the RSI and PPO you can see bullish divergence developing in both. This bodes well for the stock. It looks as if HANS will be able to break the down trend line any day now. I want to reiterate a price target of $40.00.
Hansen Natural Corporation - (HANS) - After the breakout Daily Chart
Today the stock pattern scan came out with a bullish buy trigger for HANS. As you can see by looking at the chart, HANS broke the downtrend line with a vengeance on strong volume. Had you entered HANS this morning, you would be up almost 9% today. Let's talk about the risk factor of trading this stock. If you had entered HANS on the buy alert at $33.22 you would have risked $8.00 in order to make $8.00 which makes it a high risk trade. However, if the pattern is still in tact and not broken you still have the potential to make $8.00. High risk plays can play off, they actually outperform the low risk plays. As a newcomer, I recommend that you begin with the "Lower Risk" trades and as you become a better trader, you can graduate to the "medium Risk" Trades and so on and so forth. Do not try to cherry pick the stocks, enter into the stocks that are in the right category for your trading style.
Carpenter Tech Corp.- (CRS) - Before and After Weekly Charts
Let us analyze the before and after charts of CRS. I wanted to issue a buy alert on this stock today but didn't get around to it. I may issue a buy alert on it tomorrow depending on what happens. So heads up. If you look at he Before chart of CRS, you can see that it is in a bullish continuation symmetrical triangle pattern. Now, if you look at the after chart you can see that CRS just had a 1-2-3 bullish Aroon cross and that all the other oscillators and indicators are showing bullish divergence. Also note that it has three weeks of accumulation and it hit the down trend line as of today's close.
Rio Tint LC -(RT.) - Before and After Weekly Charts
I want to go over the charts of RTP. I have been looking for a possible entry for RTP for a while now. I had talked about the possibility of exploring an option play. I have been interested in the January strike $250.00 calls. I will discuss that in the chat room tomorrow. If you look at the before chart you can see that RTP is in a bullish ascending triangle pattern with a price target of $250.00 by the middle of January.
OMGroup, Inc. - (OMG)- Daily Chart
I had originally wanted to try and buy OMG in the $40.00 area, but missed it. Now I want to wait for a pullback for entry. It is an ethanol play. I am not going to annotate the chart today because I want to you to have a look at it and see what type of pattern it is in.
44 SUGGESTED POSITIONS TOTAL (9 ARE DOUBLE DOWNS OR FIRST PLAY REITERATIONS FOR NEW PEOPLE)
BEFORE--HANS
AFTER--HANS
BEFORE--CRS
AFTER--CRS
RTP BEFORE
RTP--CURRENT
OMG-- AND POT HAVE ALWAYS BEEN TIED FOR THE NEXT ETHANOL PLAY THIS IS AN UPDATE AT SAYS "GUESS THE PATTERN NOW BEFORE I UPDATE IT IN THE MORNING AND SEE IF YOU SEE WHAT I SEE
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