Entergy is at an all-time high and yesterday was a one-day pullback. The way we look at it is that this is potentially the first bar of a small bull flag. We have to exhaust the buy setups first unless there is an extreme ADX reading for the symbol and timeframe. With ADX currently at 39, I would characterize this as a high-risk buy setup.
The buy alarm should be set at yesterday's high. If triggered, the initial stop loss should be placed just above yesterday's low. Since the pullback has been only one day, using our rule of thumb, it should be able to reach the overhead target of Tuesday's high of 60.20 on the same day.
04.02.05 09:53 #